India: Imported manganese ore prices hold steady amid weak alloy demand

• Manganese alloys producers show caution in subdued market
  
  
• Export market softens, weekly cargo arrivals drop 68% w-o-w
  
  

The Indian manganese ore market has demonstrated remarkable stability in recent weeks, despite facing several headwinds. Imported manganese ore prices have remained stable amid weak alloy demand and sufficient inventories.

Price trends

• Australian high-grade manganese ore (46% Mn): Prices remained stable w-o-w at $5.40/dry metric tonne unit (dmtu).
  
  
• Gabonese high-grade manganese ore (44% Mn): Prices remained unchanged w-o-w at $5.05/dmtu.
  
  
• South African lumps (Mn 37%): Prices remained constant w-o-w at $3.9/dmtu.
  
  

Market overview

Smelters remain cautious on imported ore purchases: Indian smelters have been adopting a cautious approach to manganese ore purchases. With existing inventories sufficient to meet current needs, many smelters are hesitant to commit to new acquisitions. This cautious buyer sentiment, combined with strategic production cutbacks and rising steel prices, has contributed to the current stability in the manganese ore market.

Weak export market for Indian manganese alloys: The subdued export market for Indian manganese alloys has curtailed demand for imported ore. Global container shortages, higher freight rates for overseas shipments, and prevailing logistical hurdles have further impeded exports. Moreover, domestic buyers' resistance to procuring manganese alloys at elevated prices is exerting downward pressure on silico manganese values, inducing a cautious approach among producers towards manganese ore purchases at higher costs.

Domestic manganese alloys under pressure: Both silico manganese and ferro manganese markets in India have experienced downward price corrections. Silico manganese prices declined by INR 650/tonne (t) ($8/t) w-o-w to INR 65,000-65,500/t exw. Ferro manganese prices also fell, with Raipur experiencing an INR 1,000/t decline and Durgapur seeing an INR 1,100/t drop.

Import arrivals fall w-o-w: Manganese ore imports to India decreased by 68% w-o-w, with shipments totalling 73,490 t between 11 September and 17 September compared to 226,288 t in the previous week.