Ferro alloy manufacturers were expecting Manganese ore prices to come down following the trend of global market
Manganese Ore India Limited (MOIL) has increased prices for all grades of Manganese ore by 5-10% all over the country. This price rise is because of low imports and low availability of ore in the domestic market and is applicable from the third quarter of FY14. The company has increased prices by 5% for the high grade Manganese ore while 10% for low grade ore.
Prices of Manganese Ore:
|Product||Prices in Q3 FY14||Prices in Q2 FY14|
|Manganese content 37.5%(high grade)||INR 10,100/MT (USD 163)||INR 9,616/MT (USD 155)|
|Manganese content 48%(high grade)||INR 15,611/MT (USD 251)||INR 14,868/MT (USD 240)|
|Manganese content 25%(low grade)||INR 3,738/MT (USD 60)||INR 3,398/MT (USD 55)|
– All prices excluding royalty and taxes.
– USD 1 = INR 61.6 (As on 2 October, 2013)
MOIL is one of the largest Manganese ore producers of India with an annual production capacity of 1.1 MnT and selling over 60 products fulfilling almost 51% of the country’s total requirement for Manganese ore.
According to the trade sources, low imports of Manganese ore in India is on account of weak currency exchange rate and low production of ore in the country during monsoons have resulted to price hike of the material in the domestic market.
Ferro alloy manufacturers however, were expecting prices to remain unchanged or to decline looking at the low demand for ore in the market. It is very surprising for the manufacturers that the ore prices have increased, as they are already struggling in making profits from their sale. A Ferro manufacturer from Eastern India says, “We were expecting a price decline from MOIL because global prices of Manganese ore are also following a downward trend.”
Price increase trend was not only applied by MOIL but also by another manganese ore miner. Orissa Manganese and Minerals Limited (ONML) have also increased its prices by around 7-10% for September’13.
ONML is a subsidiary of Adhunik Metaliks Limited with an annual production capacity of around 0.2 MnT contributing 9% of the country’s total Manganese ore production.