India: MOIL reduces manganese ore prices by upto 7.5% for Nov'20

MOIL has reduced the prices of Manganese ore to maintain price parity with seaborne manganese ore prices and also considering the falling prices of manganese alloys. Prices of Ferro grade is reduced by 7.5%, while Silico manganese grade is reduced by 5% from the prevailing prices in Oct'20, w.e.f 01-11-20.

Price parity with the international manganese ore prices:
According to Customs, Indian manganese ore imports registered a significant hike of 73% m-o-m in Sep'20. Meanwhile, the majority of imports happened for grades between 35% to 44%. Thus, maintaining price parity with international prices becomes very crucial. Last month, the prices of MOIL were higher than the imported ores, however, logistics is always in favour of MOIL for supply to Raipur-based manganese alloys producers (close proximity to MOIL), and also as immediate delivery is possible from MOIL, but not from imports.

International prices of manganese ore registered a fall of 7% for South African Mn 37% CNF India, owing to the downtrending steel market in India and higher inventories at the Chinese ports. MOIL has had to reduce its prices to maintain price parity with import prices.

Downstream Alloy Prices:
Last month, when MOIL increased the prices by 7.5%, it went against the expectations of the domestic manganese alloys producers. Meanwhile, in the current month, prices of silico manganese registered a fall 3% in Raipur and 4% in Durgapur owing to dull demand in the market. The market expectation for Nov'20 was that MOIL will reduce prices by 15%. However, this marginal reduction might not bring a sigh of relief to the silico manganese producers.