Imported manganese ore offers to India exhibit diverse trends, bookings turn slow

• High-grade imported ore prices inch as global offers edge up, while low grade fall slightly
  
  
• Weekly imported cargo arrivals inch up by 4%
  
  

Imported manganese ore prices inches up w-o-w especially in higher grades, with variations seen across origins:

• South African lumps (37% Mn) fall by $0.40/dmtu (7%) to $4.9/dmtu. Rising stocks at port and lowering demand for low grade has put the prices on a downtrend.
  
  
• Prices of Gabonese high-grade (44% Mn) ore climbed by $0.20/dmtu (2%) to $9.20/dmtu, reflecting limited supply and rising demand from global smelters for high grade.
  
  
• Australian high-grade (46% Mn) ore witnessed a similar increase of $0.10/dmtu (14%) to $9.70/dmtu due to supply constraints and improved inquiries from Chinese buyers.
  
  

Market overview:

Diverging trends in imported ore: The manganese ore market has currently characterized by contrasting price movements for different ore grades. High-grade manganese ore has witnessed an upward trajectory, driven by a resurgence in demand, particularly from China. China's ferro alloys production increased by 8.4% y-o-y to 3.271 mnt in Jun'24, according to National Bureau of Statistics (NBS) data.

This has led to price increases implemented by key mining companies. This trend is impacting India's demand-supply, the world's key manganese alloys producers. Indian importers are facing higher costs for imported ore, a key raw material for manganese alloys production.

Conversely, low-grade manganese ore, exemplified by South African 37% lumps, has experienced downward pressure. Rising stockpiles at ports, coupled with diminished buying interest, have contributed to this price correction.

"Indian manganese alloy exporters are grappling with a challenging operating environment characterized by rising input costs and subdued demand. The price of high-grade manganese ore has escalated due to supply constraints, exerting upward pressure on production costs. On the other hand, silico manganese prices in India dropped w-o-w by INR 1,500/t ($18/t) to INR 68,600-69,400/t ($819-829/t) exw across markets. Not much active bookings of manganese ore have been heard this week", shared an industry source.

India's weekly cargo arrivals up by 4% w-o-w: Imported manganese ore cargo arrivals increased by 4% w-o-w at Indian ports (reaching 223,700t between 10 July to 16 July, 2024).