India: Imported manganese ore prices remain stable across key grades

• Manganese ore import prices range-bound, barring South African origin
  
  
• Weekly import cargo arrivals to India remain stable
  
  

Imported manganese ore prices maintained a range-bound pattern over the past three weeks, reflecting a balanced market dynamic.

• Gabonese high-grade manganese ore (44%) held steady at $4.44/dmtu, demonstrating continued stability in this segment.
  
  
• Australian high-grade manganese ore (46%) saw a slight decrease of $0.01/dmtu, settling at $4.6/dmtu, indicating potential softening in demand.
  
  
• South African lumps Mn 37% graded experienced a minor increase of $0.05/dmtu, reaching $3.9/dmtu, suggesting a possibility of limited upward momentum.
  
  

The manganese ore market witnessed stable trade activity last week, characterized by need-based buying. However, a gradual decrease in manganese alloy output from Indian smelters impacted the market that reducing alloy production led to fewer inquiries and purchases for manganese ore, contributing to stable pricing across the board.

The temporary suspension of manganese alloy production facilities in Durgapur, Raipur, and Vizag further tightened supply, potentially impacting future market dynamics.

This scenario highlights a potential imbalance between manganese ore supply and demand, depending on the recovery timeline of the closed facilities and the production levels of remaining smelters.

Downstream issues cloud future of manganese ore industry: The manganese ore market faces headwinds due to weak demand in the downstream ternary precursors segment. Here are the key factors contributing to the current situations like soft demand, limits support for the manganese ore market. Smelters holding sufficient stock for 2-3 months further reduces immediate demand for fresh manganese ore.

Consequently, manganese ore prices lack upward momentum due to insufficient buying pressure.

"A major Raipur smelter expressed optimism about the long-term future despite the current limitation. As export demand gradually recovers and production gradually resumes, they foresee "progressive improvements in the supply situation" both domestically and abroad. The market for manganese ore is anticipated to continue to be robust even though it will likely take some time for local production to reach its historical levels."

Imported cargo arrivals remain stable w-o-w: India cargo arrival has shown a flat graph in manganese ore (Mn37%, Mn44%, and Mn46%) weekly import shipments, reaching 114,060 t between 7 February 2024-13 February 2024, compared to the previous week's 113,465 t. The weekly import volume of manganese ore has been primarily influenced by the concern of rising price and stoking up the material at the current price.