Imported manganese ore prices witness modest increase

• Mn ore prices increase amid rising production cost
  
  
• Imported cargoes arrival rises 34% w-o-w as supplies recover
  
  

Imported manganese ore prices exhibited modest upward movement for all grade lumps (37%, 44%, and 46% Mn) this week, after a two-week period of stability. Prices increased by $0.08/dmtu w-o-w basis. High-quality manganese ore from Gabon was offered at $4.5/dmtu, indicating an increase of $0.10/dmtu. Similarly, high-grade manganese ore from Australia was valued at $4.8/dmtu, indicating an increase of $0.10/dmtu. Additionally, lumps Mn 37% grade from South Africa was valued at $4.1/dmtu, up by 0.05/dmtu.

Ore prices rise amidst cautious market, increasing cost of production: A cautious market has been formed by recent price increase. Prepaid power users in South Africa has expected hike in production cost due to rise in electricity tariff from April of this year. As, the National Energy Regulator of South Africa (NERSA) granted Eskom permission to increase prices by 18.65% for 2023-2024 and 12.74% starting in April 2024 last year.

Due to higher production and handling charges, overseas producers of manganese ore have raised prices of all grades. Meanwhile, MOIL, the Indian state-owned PSU miner, has rolled over manganese ore prices for March, 2024. However, for grades below 44%, the miner has lifted offers by 5% m-o-m.

Imported cargo arrivals recover w-o-w: India has witnessed a 34% increase in manganese ore (Mn37%, Mn44%, and Mn46%) weekly import shipments, reaching102,024 t between 21 February 2024- 27 February 2024, compared to the previous week's 76,200 t. The weekly import volume of manganese ore has been primarily influenced by the recovering of the ocean traffic and the normalising of spot freight charges.

Prices of manganese ore are expected to rise little, according to long-term market patterns, and an overall market upswing is predicted. However, it is crucial to keep an eye on the market trend for manganese alloys.