Imported manganese ore prices witness an upward trend

• Rising prices due to supply shortages and logistical challenges
  
  
• Producers had more negotiating power over prices
  
  
• Arrivals of imported cargo climb 17% w-o-w
  
  

This week, imported manganese ore prices showed a small increase for all grade lumps (37%, 44%, and 46% Mn). Prices rose by $0.05 per dmtu from last two weeks. Gabon's high-quality manganese ore was offered at $4.55 per dmtu, representing a $0.05 increase. Similarly, high-grade manganese ore from Australia was evaluated at $4.85 per dmtu, representing a $0.05 rise. Furthermore, chunks Mn 37% grade from South Africa were priced at $4.15/dmtu, up 0.05/dmtu.

Supply, logistical hurdles contribute to the price rise: The Indian manganese ore market is experiencing a price increase, as domestic buyers, particularly key smelter has started their inquiries for the reserving ore on concern of rising prices and declining stockpiles of manganese ore. This has prompted Indian producers to initiate inquiries for stockpiling their own reserves. This also, strengthened producer bargaining power as domestic stocks dwindle.

Logistics challenges in South Africa: South Africa, a key exporter of Manganese ore, faced higher logistics costs associated with transporting ore to ports by truck. These rising costs further incentivised producers to raise prices and producers were in a stronger position to negotiate prices, leading to an increase of ore prices.

Imported cargo arrivals increase 17% w-o-w: India's weekly imported shipments of manganese ore (Mn37%, Mn44%, and Mn46%) increased by 17% between 28 February 2024-5 March 2024, reaching 119,815 t, up from 102,024 t in the previous week. The weekly imported amount of manganese ore has been predominantly driven by the recovery caused by rising Mn ore prices.

These price movements suggest a potential shift in the imported manganese ore market after a period of stability. Further observation is necessary to determine if this is a temporary fluctuation or the beginning of a sustained upward trend.