India: Imported manganese ore prices dip on buyer resistance, Australian grades firm

• Drop in manganese alloys demand hits ore inflow
  
  
• Arrivals of imported ore cargo fall 22% w-o-w
  
  

Imported manganese ore prices dipped this week due to weak demand for the high-priced variety. Buyers were hesitant to commit at current levels, leading to a softening in prices.

• Gabonese high-grade manganese ore (44%) was priced at $8.40/dmtu, down by $0.20/dmtu due to weak demand for high-grade manganese alloys.
  
  
• Australian high-grade manganese ore (46%) stayed firm at $9/dmtu, indicating potential softening in demand.
  
  
• South African lumps Mn 37% grades were at the same level this week, at $6.35/dmtu, down by $0.20/dmtu, suggesting a possibility of limited upward momentum amid need-based demand.
  
  

Factors keeping imported manganese ore stable

Manganese alloy slump stalls imported ore purchases: Imported manganese ore prices fell slightly this week due to reduced inquiries and purchase volumes, driven by a sluggish export market for Indian manganese alloys. The lack of buying interest hindered deal finalization and contributed to the price decline. Indian manganese alloys smelters delayed purchases of imported manganese ore due to a combination of factors listed below:

Subdued demand: Weak domestic demand for manganese alloys led to a significant INR 6,650/t ($80/t) decline in silico manganese prices to INR 83,000-85,000/t ($993-1,017/t) exw across markets. This forced smelters to reduce their own offers for imported ore in an attempt to attract buyers.

Meanwhile, ferro manganese (HC70%) prices dipped in key Indian producing regions this week. Raipur saw a w-o-w decline of INR 900/t, while Durgapur prices fell by INR 2,000/t. Lower demand and buyers' resistance to higher offers were cited as reasons for the price correction.

In China, acceptance of high ore prices was low, with the market in a wait-and-see mode, hoping for good news and resisting further hikes in prices of imported ore

Furthermore, there was limited global acceptance of elevated prices for imported manganese ore. This dampened overall demand and put downward pressure on import prices.

Weak steel market: The broader weakness in the steel market, reflected by a decline in the domestic steel billet index to INR 42,800/t ($512/t) exw-Raipur, further reinforced the cautious buying behaviour.

These factors suggested a potential slowdown in demand for imported manganese ore till the domestic silico manganese market stabilizes.

Imported cargo arrivals decrease 22% w-o-w: Manganese ore cargo arrivals to India decreased by 22% (Mn37%, Mn44%, and Mn46%), with weekly shipments reaching 194,190 t between 5 -11 June, down from 249,569 t in the previous week.