India: Imported Manganese ore prices dipped by 5% in Sep'19

Indian Manganese Alloys market is withering away with the prices of Silico Manganese reaching to the lowest in two years in the domestic market. Producers of Manganese Alloys are wary of such market conditions and are reducing their production. Manganese Ore prices have been gradually falling down since past month. The Chinese market is mostly responsible for such falls. The transactions in the Chinese market is sporadic and the buyers have enough inventory, which is causing such falls in prices in the global market. Producers in China feel that the prices may reduce to further levels and they have sufficient inventory and don't plan on buying ores before National Holidays.

In India, Manganese Ore Imports dipped by 47% in Aug'19. Imports from all the three major exporting countries, viz., South Africa, Australia, and Gabon suffered despite the lower prices. Producers in India are mostly in a wait and watch mode and are waiting for the next Price revisions by MOIL. It is anticipated that keeping the present market scenario into consideration, MOIL may reduce the prices. Prices for Australian Lumps, Mn 46%, Fe 5% are down at USD 5.75/dmtu CIF India. South African Carbonate Ore (Lumps, Mn 37-38%) are down to USD 4.95/MT CIF India, and Manganese Ore Lumps, Mn 44%, Fe 5% from Gabon is down at USD 5.35/dmtu for October Shipments.

On the future outlook, prices of Manganese Ore may reduce further as the miners are competing for shipments, and the price decline in the buyer's market has not slowed down. Producers in India are also eagerly waiting for the MOIL Price revision.