MOIL shares rise as manganese ore prices see a 1-7.5% hike effective January 1
MOIL revises manganese ore prices across key grades; shares jump over 2 per cent on optimism.
MOIL Limited saw its shares climb 2.37 per cent to Rs 339.30 after the company declared a price hike across various grades of manganese ore. The new pricing, effective from January 1, 2025, aims to reflect current market dynamics and strengthen the company’s financial position.
Ferro-grade manganese ore prices increased
For ferro-grade manganese ore with a manganese content of 44 per cent or higher, prices have been increased by one per cent over the rates set on January 1, 2024. Meanwhile, ferro grades with less than 44 per cent manganese content will see a steeper rise of five per cent. These changes are expected to improve MOIL's revenue margins while remaining competitive in the global market.
SMGR and fines see notable revisions
Substantial changes have also been made to SMGR (Mn-30 per cent, Mn-25 per cent, and Mn-20 per cent) and fines grades, with a five per cent price increase compared to the rates effective since January 1, 2024. This marks a consistent upward revision aimed at better aligning prices with production and processing costs.
Chemical grades witness highest hike
Prices for all chemical grades have been increased by 7.5 per cent, making this category the highest beneficiary of the revision. This adjustment reflects strong demand from industries utilizing manganese ore in chemical production.
Unchanged prices for select categories
Prices for certain SMGR categories, including SMH, CHS578, CHL442, TDL499, and GML464, remain unchanged. Additionally, the price of electrolytic manganese dioxide (EMD) will stay fixed at Rs 205,000 per metric ton for January 2025.
Operational and financial updates
MOIL, which is a government-owned enterprise holding 64.68 per cent as of September 2024, continues to lead India’s manganese ore production. Despite facing challenges in the previous quarter, with standalone net profit declining 18.8 per cent to Rs 49.96 crore and net sales dropping 16 per cent year-on-year, the company remains optimistic about the long-term outlook.
The price revision reflects MOIL's strategic focus on optimizing revenues while catering to market demands. Investors and stakeholders will closely monitor the company’s Q3 performance to assess the impact of these pricing changes.
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