India: Imported manganese ore prices decline amid waning alloys demand

• Weakening manganese alloys demand triggers ore price crash
  
  
• Imported cargo arrivals rise 55% w-o-w
  
  

India's imported manganese ore market experienced a sharp downturn w-o-w, primarily due to ongoing challenges in alloy exports. Furthermore, the price reduction for October shipments by Comilog has also contributed to the decline in spot prices, discouraging market participants from making immediate purchases.

Price trends:

• Australian high-grade manganese ore (46% Mn): Prices fell by $1.05/dmtu w-o-w to $5.4/dmtu, reaching a 4-month low.
  
  
• Gabonese high-grade manganese ore (44% Mn): Prices fell by $1.0/dmtu w-o-w to $5.05/dmtu, reaching around 4 month low.
  
  
• South African lumps (Mn 37%): Prices fell to an over 7-month low of $3.9/dmtu, down $0.10/dmtu - the same level seen in last week of January 2024, reflecting reduced demand for low-grade manganese alloys.
  
  

Market overview

Manganese alloys markets face significant downturn: The global manganese alloys market is currently experiencing a substantial downturn, characterized by a significant decline in demand and prices. A combination of factors, including oversupply, a slowdown in global steel production, and reduced inquiries from importing countries, has contributed to this challenging market environment.

Major exporting ports are reporting increased inventory levels as smelters implement strategic measures to mitigate losses amidst the market downturn. The decline in demand for manganese alloys has led to a significant downward pressure on the price of imported manganese ore.

Silico manganese market under pressure: The Indian silico manganese market continues to face significant challenges, with prices experiencing a sharp decline in the past week. Panic selling and falling offers have pushed domestic silicomanganese prices to a five-month low, reaching INR 65,800-66,000/t exw in Raipur, Durgapur, and Visakhapatnam. This represents a week-over-week decrease of approximately INR 1,000/t ($12/t).

The downward trend in the market has also impacted export offers, which have dropped by around $15/t w-o-w. Muted trade from overseas, driven by declining consumption from key importing countries, has contributed to the weakening manganese market.

Import arrivals up w-o-w:

Manganese ore imports to India increased by 55% w-o-w, with shipments totaling 226,288 t between 4 September st and 10 September compared to 146,158 t in the previous week.