India: Imported manganese ore prices dip on buyers' resistance

• Drop in manganese alloys demand hits imported ore inquiries
  
  
• Arrivals of imported ore cargo fall by 42% w-o-w
  
  

India's imported manganese ore market saw a slight downturn this week, primarily due to a decline in demand for manganese alloys across all grades. This weakening demand has made buyers more cautious, resulting in reduced purchase commitments and a subsequent softening of ore prices.

• Gabonese high-grade manganese ore (44%) was priced at $6.05/dmtu, down by $0.10/dmtu due to weak demand for high-grade manganese alloys.
  
  
• Australian high-grade manganese ore (46%) prices fell by $0.15/dmtu to $6.45/dmtu, indicating potential softening in demand.
  
  
• South African lumps Mn 37% grades were at the same level this week, at $4/dmtu, suggesting a possibility of limited upward momentum amid need-based demand.
  
  

Key factors behind stable imported manganese ore prices

Manganese alloy slump stalls imported ore purchases: Imported manganese ore prices declined slightly this week due to reduced inquiries and lower purchase volumes, influenced by a sluggish export market for Indian manganese alloys. The lack of buying interest hampered deal finalisation and contributed to the price decrease. Indian manganese alloy smelters delayed their purchases of imported manganese ore due to several factors outlined below:

Subdued demand: Weak domestic demand for manganese alloys led to a significant w-o-w decline. Silico manganese prices in India fell by INR 900/t ($11/t) to INR 66,700-67,100/t ($794-799/t) ex-works across markets in Raipur, Durgapur, and Visakhapatnam. Domestic silico manganese prices in India have continued their downtrend, reaching a three-month low. This has forced overseas miners to reduce their ore offers to attract buyers.

Meanwhile, ferro manganese (HC70%) prices continued their downtrend w-o-w, falling by INR 600/t ($7/t) in Raipur to INR 73,000/t ($869/t) ex-works. In Durgapur, prices declined by INR 1,800/t ($21/t) w-o-w, also reaching INR 73,000/t ($869/t). The price correction was attributed to lower demand and buyers' resistance to higher offers.

Bearish steel market sentiments: The broader weakness in the steel market, as reflected by a decline in the domestic steel billet index to INR 38,600/t ($461/t) ex-works Raipur, down by INR 550/t ($7/t) w-o-w as on 7 September, Further reinforced cautious buying behaviour. These factors suggest a potential slowdown in demand for imported manganese ore until the domestic silico manganese market stabilises.

Imported cargo arrivals fall 42% w-o-w: Manganese ore cargo arrivals to India decreased by 54% (Mn37%, Mn44%, and Mn46%), with weekly shipments totaling 146,158 t between 28 August and 3 September, down from 252,766 t in the previous week.