India: High-grade manganese ore import prices climb w-o-w

• Lower allocations from global miners
  
  
• Weekly cargo arrivals at Indian ports fall
  
  

Imported manganese ore prices have recently seen a slight increase amid rising manganese alloys prices and moderate demand.

• Australian high-grade ore: Australian high-grade (46% Mn) ore witnessed an increase of $0.05/dmtu to $4.79/dmtu due to supply constraints.
  
  
• Gabonese high-grade ore: Prices of Gabonese high-grade (44% Mn) ore edged up by $0.02/dmtu to $4.48/dmtu, reflecting rising production and handling costs.
  
  
• South African lumps: South African lumps (37% Mn) remained firm at around $4.22/dmtu. Limited upward price movement is possible due to sufficient low-grade ore available with the smelters.
  
  

Market overview

Manganese alloys price surge amid global supply concerns: This week, Indian manganese alloys prices saw significant increases. Domestic silico manganese prices rose by INR 1,100/t ($13/t), reaching INR 70,500-71,400/t ($814-825/t) in Durgapur, Raipur, and Vizag, driven by concerns over global manganese ore supply, rising ore prices, and steel prices. Ferro manganese (HC 70%) prices also increased by INR 1,600/t ($18/t) to INR 74,500/t ($861/t) in Raipur and Durgapur, due to reduced production by smelters in key regions.

Globally, manganese ore suppliers, including Eramet Comilog from Gabon, have raised their prices for February shipments. Mn 44.5% lumps are priced at $4.3/dmtu, and 43% grade chips at $4.1/dmtu, both reflecting a $0.2/dmtu m-o-m increase, signalling a potential upward trend in global prices.

Global miners squeeze allocations: Major global manganese ore producers are strategically cutting back supply to Indian smelters, likely in response to weaker global demand or to balance supply-demand dynamics.

The reduction in quantity allotments from major overseas miners from 8,000 t per month to 5,000 t is a substantial cut, especially for high-grade manganese ore, which yields around 90% compared to domestic ore. This has created a sense of panic among Indian smelters and is likely to drive near-term price increases.

Weekly cargo arrivals fall: Manganese ore imports to India decreased by 33% w-o-w, with shipments totaling 152,068 t between 15 January to 21 January 2025.