India: MOIL increases manganese ore prices by 7.5% for Oct' 20
MOIL has increased prices for all grades of Manganese ore by 7.5% m-o-m for Oct' 20, w.e.f 01-10-20. Meanwhile, MOIL has also offered a discount of 10% on basic price on BG fines (BGF534), if lifted more than 5500 t.
Total quantity offered is 217,133t, out of which 100,093t is for ferro grade, 49,609t for silico manganese grade and remaining fines and chemical grade.
According to the market sources, the inventory levels with the Raipur manganese alloys producers is quite low, as they are completely dependent on MOIL for their manganese ore requirement, and MOIL hasn't been offering much quantity since past few months. As per our understanding, the rationale behind this increase can be a higher demand for ores.
Producers in the Raipur market believe that with the increase in the manganese ore prices, the continuous fall of silico manganese prices would halt. Although, when asked about an increase in the prices, they seemed to be less confident due to downstream steel demand.
Manganese Ore (India) Limited (MOIL) is the largest producer of manganese ore in India, contributing to more than 50% of the total consumption. MOIL operates 11 mines in the states of Maharashtra and Madhya Pradesh. Raipur (Central India) is the major manganese alloys producing hub in India and producers from central India are largely dependent on MOIL for ores because of close proximity to MOIL and significant distance away from the ports.