India: Imported manganese ore offers remain under pressure on falling bids
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- Cautious buying and production cuts in manganese alloys stabilize imported ore
- Weekly cargo arrivals increase w-o-w
India's imported manganese ore market has demonstrated resilience in recent weeks, maintaining a stable price trajectory despite a challenging environment.
Price trends:
- Australian high-grade manganese ore (46% Mn): Prices remained stable, dropping by $0.05/dmtu w-o-w to $6.6/dmtu.
- Gabonese high-grade manganese ore (44% Mn): Prices remained at same level, edged down by $0.05/dmtu w-o-w to $6.15/dmtu.
- South African lumps (Mn 37%): Prices remained stable w-o-w at $4/dmtu.
Market overview
Manganese alloys market maintains stability: The stability in domestic manganese alloy prices has indirectly supported the resilience of imported manganese ore prices. With reduced demand for alloys, the need for imported ore has been tempered, contributing to a more balanced market.
Indian smelters' cautious approach on challenging market: Despite facing several headwinds, India's manganese ore market has demonstrated remarkable resilience, maintaining a stable price trajectory. Key factors influencing this stability include:
- Strategic inventory management: Indian smelters have adopted a cautious approach to manganese ore procurement, preferring to rely on existing inventories rather than committing to new purchases. This strategic stance has helped to mitigate the impact of market uncertainties on import volumes and prices.
- Production adjustments: Domestic manganese alloys producers have implemented strategic production cutbacks to reduce demand for imported ore. This has contributed to a more balanced market and helped stabilize prices.
Import arrivals rise w-o-w:
Manganese ore imports to India increased with shipments totaling 252,766 t between 21 August and 27 August compared to 123,537 t in the previous week.
Near term outlook
The imported manganese ore prices anticipated to experience a downward correction in the near term due to surge in vessel arrivals has led to a significant increase in manganese ore stocks at Indian ports. This oversupply situation is exerting downward pressure on prices.
