India: Imported manganese ore prices remain range-bound on cautious buying

• Steep drop in manganese alloys prices
  
  
• Manganese ore arrivals down 32% m-o-m
  
  

Prices for imported manganese ore have stayed range-bound this week, suggesting inconsistent market conditions.

• Australian high-grade manganese ore (46%) inched up by 0.05/dmtu reached at $9.05/dmtu.
  
  
• Gabonese high-grade manganese ore (44%) is priced at $8.45/dmtu, slightly up by $0.05/dmtu due to scarcity in high grade ore supply globally.
  
  
• South African lumps (Mn 37%) hold at $6.35/dmtu, down by $0.20/dmtu, reflecting limited demand in low grade manganese alloys.
  
  

Imported manganese ore prices have remained relatively stable this week due to lower inquiries and purchase volumes, owing to a weak export market for Indian manganese alloys. Moreover, buyers have secured enough manganese ore in the past few weeks. This has also decreased interest in manganese ore bookings this week, resulting in limited demand. However, the scarcity of high-grade manganese ore in the global market has caused prices to rise modestly.

Factors keeping prices range-bound

Weak demand, price correction: Indian manganese alloy smelters are adopting a prudent approach to imported manganese ore procurement in response to a confluence of market developments:

• Domestic silico manganese prices fall to two-month low: A significant price correction has swept across key Indian silico manganese markets (Raipur, Durgapur, and Vishakhapatnam). Domestic prices have slumped to two-months low, currently ranging from INR 78,700-80,000/t exw ($942-957/t), reflecting a decline of INR 4,650/t ($56/t) w-o-w. This downturn is attributed to weak domestic demand and buyer resistance to quoted higher prices.
  
  
• Ferro manganese market downturn: The ferro manganese (HC70%) market has mirrored the downward trend. Prices in Raipur have witnessed a sharp decline of INR 5,500/t ($66/t) w-o-w, reaching INR 88,600/t ($1,060/t) exw. Durgapur prices have followed a similar trajectory, falling by INR 5,000/t ($60/t) w-o-w to settle at INR 89,000/t ($1,065/t) exw. This softening is likely due to a combination of subdued demand and buyer unwillingness to accept elevated prices, leading to a less active market.
  
  
• Indian billet prices at three-month low: the domestic steel billet index stood at INR 41,200/t ($493/t) exw-Raipur, down by INR 1,600/t ($19/t) on 21 June at 17:54 hrs. These factors suggest a potential slowdown in demand for imported manganese ore until the domestic silico manganese market stabilizes.
  
  

Imported manganese ore cargo arrivals fall 32% w-o-w: Manganese ore cargo arrivals to India decreased by 32% (Mn37%, Mn44%, and Mn46%), with weekly shipments reaching 131,405 t between 12 Jnu'24 - 18 June'24, up from 194,190 t in the previous week. The weekly import volume of manganese ore has declined from the previous week's as limited cargo supply of high-grade manganese ore from Gabon.