India: Sandur's manganese ore auction witnesses higher bids amid alloy price surge

• Buyers book 35% of offered quantity
  
  
• Buyers mostly prefer lower grades (28-30%)
  
  

On 3 October 2024, Sandur Manganese & Iron Ore Ltd auctioned 23,184 tonnes (t) of manganese ore (Mn: 20-30%, -10-100mm). Approximately 8,064 t were sold at prices ranging from INR 4,800 to 10,000/t, while the remaining 15,120 t remained unsold, as reported by BigMint.

Only around 35% of the offered quantity was booked, reveals data.

Key observations

Bids scale up in Oct'24 against Sep'24

Data showed that the bid prices of Mn: 28-30% (lumps) in the auction in October 2024 were recorded at weighted average of INR 9,600/t ($114/t), while those in September 2024 were at INR 8,800/t ($105/t), increasing by INR 800/t(9%).

Bids for lumps Mn 30-32 were recorded in the range of INR 8,650-10,020/t. The rise in bids can be attributed to the overall improvement in the ferro alloys market. As steel demand increased, the demand for ferro alloys also strengthened, leading to higher bids at auction. The recent hike in long steel and billet prices further supported the higher bidding activity in this manganese ore auction.

Bids rise compared to base price

This auction saw an overall increase of 15% when comparing the base prices with the final bid prices. For instance, Mn 28-30% grade lumps had a base price of INR 8,100/t ($96/t), and the bidding reached a weighted average price of INR 9,600/t ($114/t), reflecting an increase of around 19%. However, other grades of manganese ore (30-32%) remained largely stable, with only a slight 8% increase in the bid price. The base price was set at INR 8,580/t ($102/t), and the final bidding price reached around INR 9,300/t ($111/t).