Executive Interviews

Asian Metal: Welcome to the interview with Asian Metal. Could you please briefly introduce your company?

Aakash Khandelwal: Phoolchand Bhagatsingh Private Limited was founded in 1957 in Mumbai by Mr. Phoolchand Bhagatsingh and Mr. Bhagatsingh Phoolchand, a father-son duo. The company was established in the early years of India’s independence and initially focused on metal trading. Over the past 65 years, this family business has been passed down through the second and third generations and is now managed by Mr. Rajeev Bhagatsingh Phoolchand and Mr. Sanjeev Bhagatsingh Phoolchand. Our business spans 60 to 70 types of minor metals, ferroalloys, and basic metals, with multiple branches and offices across India. In the manganese product sector, we have more than 30 years of experience. We currently focus on importing manganese flake and trading manganese alloys within the Indian market.

Asian Metal: How is the demand for manganese flake in the Indian market? What is the annual demand level?

Aakash Khandelwal: Overall, the demand for manganese products in the Indian market remains robust, largely due to the healthy performance of the steel and alloy industries. India is currently the second-largest producer of crude steel globally, but its per capita consumption of finished steel still has significant room for growth. For example, in 2023–2024, the global per capita consumption of finished steel was approximately 221 kg, with China at 635 kg, while India only consumed 97.7 kg per capita. This indicates that there is still long-term growth potential for steel demand in India. As for manganese flake, India’s annual import volume for the 2024–2025 fiscal year is estimated to be between 40,000 and 60,000 tons. From a macroeconomic perspective, India’s real GDP growth, for instance, reached about 7.8% in Q1 2025, up from 6.5% in the same period in 2024. This reflects a generally stable steel industry. Looking ahead to 2026, although demand growth may be influenced by policy and cyclical factors, as a developing economy, India’s medium- to long-term demand outlook remains optimistic.

Asian Metal: Has it become more difficult to procure at lower prices over the past two years? How will your company respond to this change?

Aakash Khandelwal: Indeed, it has become noticeably harder to secure lower procurement prices since 2025. We have observed that suppliers have become more cautious in terms of transaction pace, with stricter requirements regarding order quantities and payment terms, while also reducing the room for price negotiations. In response, we have adjusted our procurement strategy, opting for a more flexible approach. We have reduced the typical order volume from around 200 tons to approximately 50 tons per purchase. This strategy helps mitigate risk during periods of high prices and allows us to remain agile in responding to market fluctuations.

Asian Metal: Over the past six months, the landed price of manganese flake in India has remained high. Has the sustained high shipping cost affected procurement decisions?

Aakash Khandelwal: Yes, the increase in shipping costs has significantly impacted our procurement decisions. From March to September 2025, freight rates from China to India increased by approximately 25%–40%, depending on the shipping scale and vessel type. This has somewhat compressed the space for lower-price procurement and has added cost pressure on Indian traders. However, in practice, we usually take multiple factors into account. First, demand—if downstream demand remains stable, we will continue to procure at higher landed prices. Second, price trends—For instance, when the landed price in India remained at a relatively high level of $2,000–2,030/ton in early September last year, we chose to hold off on purchasing. By December, when the price rose above $2,600/ton and the market supply remained tight, we decided to proceed with the purchase. Additionally, exchange rate fluctuations and financial costs are also important considerations, especially with India’s high interest rates. We need to ensure quick sales after the goods arrive at the port.

Asian Metal: Besides manganese flakes, how is the demand for manganese ingots and manganese balls in the Indian market?

Aakash Khandelwal: The demand for manganese flakes and manganese balls in India is relatively high, whereas demand for manganese ingots is more limited. This is mainly because most downstream companies in India design their equipment with manganese flakes and manganese balls as the primary raw materials. In terms of pricing, the price gap between manganese flakes and manganese balls has remained stable in recent years, which is in stark contrast to a decade ago when there was virtually no price difference, and in some periods, manganese balls were even priced lower than manganese flakes.

Asian Metal: Due to the sustained high prices of manganese flakes, some buyers have shifted to using manganese alloys as substitutes. Does this create new opportunities for Indian manganese alloy suppliers?

Aakash Khandelwal: Indeed, the growing demand for manganese alloys as substitutes is creating new opportunities for Indian suppliers. However, the shift in consumer behavior will take time, and suppliers need to continuously demonstrate their cost advantages and stable quality. In terms of competitiveness, Indian manganese alloys have certain advantages. On the one hand, compared to manganese flakes, Indian alloy suppliers offer shorter delivery times and lower logistics costs. On the other hand, India is one of the world’s largest producers of silico-manganese and ferromanganese. Buyers in Southeast Asia and the Middle East tend to prefer Indian alloys as an alternative to higher-priced manganese flakes. Currently, we are conducting manganese alloy trade through our domestic branches, with a monthly trade volume of around 100 tons.

Asian Metal: Looking ahead to the next quarter, how do you view the price and demand trends for manganese flake in India?

Aakash Khandelwal: We believe that due to the sharp rise in raw material prices in China in December 2023, coupled with the low inventory levels among manufacturers and traders, manganese flake prices may remain elevated in the short term. As for demand, the Indian market remains supported overall, with steady demand from sectors such as steel and foundry. However, for traders, procurement difficulties may increase, and market participants may adopt more strategic approaches. For instance, when prices decline, buyers may be more inclined to purchase spot goods, while price-sensitive buyers may delay or reduce their procurement volumes.

Asian Metal: What new areas will your company focus on this year?

Aakash Khandelwal: This year, we are more focused on integration opportunities along the industry chain, including investments or equity partnerships with certain manufacturing companies in the sector. By positioning ourselves in the current environment of uncertainty, we aim to strengthen the company’s adaptability to future market changes and create more room for long-term growth.