India: Imported manganese ore prices plunge as global miners slash offers

• Weakening manganese alloys demand triggers ore price crash
  
  
• Weekly imported cargo arrivals fall 36% at Indian ports
  
  

India's imported manganese ore market witnessed a decline during the week ending 17 August 2024, as persistent challenges such as weak alloy exports, container shortages, and elevated ocean freight costs continued to weigh on the sector.

Price trends:

• Australian high-grade manganese ore (46% Mn): Prices fell by $3.1/dmtu w-o-w to $6.6/dmtu, reaching a 4-month low.
  
  
• Gabonese high-grade manganese ore (44% Mn): Prices fell by $2.95/dmtu w-o-w to $6.15/dmtu, reaching a 4 month low.
  
  
• South African lumps (Mn 37%): Prices fell to an over 5-month low of $4/dmtu, down $0.30/dmtu - the same level seen in March 2024, reflecting reduced demand for low-grade manganese alloys.
  
  

Market overview

Global miners lower ore offers - United Manganese of Kalahari (UMK) and Jupiter Mines Limited, operating the Tshipi Borwa mine in South Africa, have announced August shipment offers. UMK decreased its 36% grade semi-carbonate lump price to $3.80/dmtu CIF China, down $2.4/dmtu m-o-m. Jupiter has set its August CIF China price for high-grade 36.5% semi-carbonate lump at $3.9/dmtu, a significant fall from last month's $6.3/dmtu.

Jupiter Mines Limited has set the CIF China price for August shipment of its high-grade Mn36.5% South African semi-carbonate lump at $3.9/dmtu, down $2.4/dmtu m-o-m. The manganese ore is sourced from its Tshipi Borwa mine in the Kalahari field.

Eramet comilog lowered their September 2024 price for 44.5% for Gabonese grade to around $6/dmtu CNF China and the Gabonese Chip is at around 5.80/dmtu CNF China, however it could not be confirmed till the time of publishing the report.

Manganese ore prices plummet on weak demand: Global demand for manganese alloys has significantly weakened, exerting substantial downward pressure on the price of imported manganese ore. Major exporting ports have reported increased inventory levels due to limited inquiries from importing countries, as smelters adopt strategic measures to mitigate losses amid market oversupply. Concurrently, a slowdown in global steel demand has further dampened consumption of manganese alloys.

Moreover, the industry has experienced a sharp decline in imported ore prices following a period of elevated costs caused by the shortage of high-grade manganese ore, primarily from Australia, resulting from the impact of Cyclone Megan. This price correction has occurred after five months of upward pressure.

Silico manganese market under pressure: Silico manganese prices experienced marginal weakness last week, with rates declining slightly amid subdued domestic demand. Export markets too softened, impacted by tepid trading conditions and ongoing container shortage. Prices of the 65-16 grade decreased by $14/t to $963/t FOB, while the 60-14 variant saw a steeper decline of $16/t to $828/t FOB. Consequently, imported manganese ore prices faced downward pressure.

Import arrivals decline w-o-w:

Manganese ore imports to India fell by 36% w-o-w, with shipments totaling 127,646 t between 7 August and 13 August compared to 202,164 t in the previous week.

Near-term outlook

The future trajectory of manganese ore prices will be contingent upon the export market's recovery and the alleviation of logistical challenges. A resurgence in export demand could exert upward pressure on ore prices, while persistent container shortages and elevated freight costs may continue to impede import activity in the near term.