Odisha Manganese and Minerals Limited (ONML), a subsidiary of Adhunik Metaliks Limited has increased its Manganese ore prices in the Indian market by around 7%-10% for September 2013. ONML, having an annual production of about 2 lakh tonnes, contributes 9% of the country’s overall Manganese ore production.
Manganese ore is being traded around Rs 5,750/MT for 25-26 Manganese (Mn), Rs 10,000/MT for 36-38 Mn and Rs 20,250/MT for 48-50 Mn in the current week of September 2013, i.e., from 02.09.13 to 08.09.13. All mentioned prices are Ex-mines including royalty.
The recent hike in Manganese ore prices is largely owing to falling rupee which has made imports expensive. India’s imported Manganese ore market remains weak with sluggish demand and light transactions. The country imports most of its Manganese ore requirement from South Africa and Australia. And South Africa is currently facing severe logistical problem which is also one of the major constraints in export of South African Manganese ore.
Presently, the Indian Ferro alloys industry is not in a good state owing to poor demand for the material impacting Manganese ore requirement. Consequently, the Manganese ore market is going through a rough phase and the import growth is negative compared to the last year.
In India, Manganese ore is largely mined by MOIL (Manganese Ore India Limited), a government owned enterprise. MOIL is the largest Manganese ore producer of India. There are other producers such as Orissa Mining Development Corporation (OMDC), Tata Steel, Sandur Manganese, Rungta Mines etc. Also, there are some small private mines in Madhya Pradesh, Odisha and Karnataka which produce small quantity of ore.
MOIL produces around 51% of the total requirement of Manganese ore for the country. It produced about 11.3 lakh tonnes in FY 13.