India: Imported manganese ore prices hold firm, alloys demand weakens

• Smelters turn conservative, rely on inventories
  
  
• Cargo arrivals at Indian ports decrease 27% w-o-w
  
  

The Indian manganese ore market displayed resilience, keeping prices stable w-o-w. Despite recent challenges, the market has demonstrated its ability to weather fluctuations and maintain a balanced outlook.

Price trends

• Australian high-grade manganese ore (46% Mn): Prices remained stable w-o-w at $4.35/dry metric tonne unit (dmtu), edged down by $0.05/dmtu.
  
  
• Gabonese high-grade manganese ore (44% Mn): Prices remained nearly stable w-o-w at $4.05/dmtu, marginal drop by 0.05/dmtu.
  
  
• South African lumps (Mn 37%): Prices remained constant w-o-w at $3.95/dmtu, slightly slips $0.05/dmtu.
  
  

Market overview

Manganese ore market stable: Indian smelters adopted a conservative approach to manganese ore procurement, relying on existing inventories to meet immediate needs. The market's cautious sentiment, coupled with strategic production adjustments and strengthening steel prices, contributed to a period of stability in the manganese ore segment. Furthermore, subdued demand for manganese alloys both domestically and internationally compelled smelters to curtail production to mitigate losses.

Weak export market for manganese alloys: Domestic buyers resisted procuring manganese alloys at elevated prices. This exerted downward pressure on silico manganese prices, leading producers to adopt a cautious approach towards manganese ore purchases at higher costs. Silico manganese export price (for grade 65-16) stood at $898/t FOB Vizag/Haldia, India, down by $14/t w-o-w. Prices of silico manganese (65-16) stood at $881/t FOB Vizag/Haldia, India, down by $15/t w-o-w.

Meanwhile, domestic steel billets largely stable inching up by INR 400/t ($5/t) w-o-w to INR 39,400/t ($467/t) exw-Raipur on 22 November 2024.

Furthermore, the prevailing uncertainty in the global steel market and concerns about a potential economic slowdown have further dampened market sentiment. As a result, silico manganese producers have been compelled to adjust their pricing strategies to align with the prevailing market conditions.

Import arrivals fall w-o-w: Manganese ore imports to India decreased by 27% w-o-w, with shipments totaling 34,496 t between 06 November and 12 November compared to 47,176 t in the previous week.