India: Imported Manganese Ore Prices Escalate Owing to Extended Lockdown in South Africa
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Indian Manganese ore prices have escalated this week by more than 10% due to extended lockdown in South Africa. Although, most of the Manganese alloys producers believe that the increase in the Manganese ore prices is short-lived. Meanwhile, buyers with an urgent requirement of Silico Manganese may buy at higher prices. Major market participants shared that due to the nationwide lockdown imposed in the country, most of the plants are not operating and those operating are working at much lower capacity utilization rate.
A Durgapur based producer revealed that the majority of labours in the West Bengal are dependent on the public transports and hence, starting of production wouldn't be possible before the lockdown ends and the local transportation resumes. Meanwhile, a producer from Raipur shared a similar sentiment that the availability of labour remains a major concern. Therefore, even though the prices of Manganese ore have raised quite drastically, the immediate effect on the Indian industry may be short-lived and may ease out soon.
In South Africa, after applying to the Department of Mineral Resources, Tshipi e Ntle Manganese Mining (Pty) Limited ("Tshipi") has been approved to partially restart operations at the Tshipi Borwa Manganese Mine from 14 April. Their management is currently working with contractors, suppliers and Transnet to coordinate the partial recommencement of production and exports.
| Manganese Ore Prices | ||||
| Category | Grade | Prices | ||
| wk2 Apr'20 | wk1 Apr'20 | W-o-W (%) | ||
| CNF India (USD/dmtu) | Lumps, Mn 38% South Africa | 5.2 | 4.7 | 11 |
| Lumps, Mn 44% Fe 5%, Gabon | 5.85 | 5 | 17 | |
| Lumps, Mn 46% Fe 5%, Australia | 6.25 | 5.35 | 17 | |
China:
Chinese Silico Manganese prices have hit its heights in the spot market after the Manganese ore prices increased post the announcement of the extension of lockdown in South Africa. Although, some Manganese alloy smelters refrained from buying much ores as the tender prices for Silico Manganese for April delivery were declared by Hebei Steel. The purchase price for April-delivery silico-manganese was at yuan 6,600/MT (USD 934/MT), which is although higher than the march deliveries, yet below the current market expectations. The situation of the market is pessimistic as the ore prices are soaring high, and the predecided alloy prices are low.
