India: Imported manganese ore prices stable despite rising alloy prices

• Smelters adopt cautious manganese ore buying stance
  
  
• Weekly cargo arrivals inch up by 5% w-o-w
  
  

India's imported manganese ore prices have maintained a consistent level over the past two months, reflecting a cautious market sentiment and limited availability of ore at ports. Uncertainties surrounding alloy demand and supply constraints have contributed to the stability in prices.

Price trends:

• Australian high-grade manganese ore (46% Mn): Stable w-o-w at $5.4/dmtu.
  
  
• Gabonese high-grade manganese ore (44% Mn): Stable w-o-w at $5.05/dmtu.
  
  
• South African lumps (Mn 37%): Stable w-o-w at $3.9/dmtu.
  
  

Market overview:

Domestic manganese alloys market shows signs of strengthening: Domestic manganese alloys prices in India have exhibited a slight upward trajectory, reflecting increased demand and strategic production adjustments by smelters. Despite the stability in global manganese ore prices, the implementation of production cuts by smelters in key centers has played a pivotal role in stabilizing domestic prices.

Smelters in Raipur, Vizag, and Durgapur have reduced production by up to 50% to mitigate potential losses. This proactive measure, combined with the recent uptrend in steel prices, has created a supportive environment for domestic manganese alloys.

These combined factors have helped to maintain the resilience of imported manganese ore prices, demonstrating the strength of the domestic market in the face of external pressures.

Adequate inventories and cautious buyer sentiment stabilize Mn ore prices: Indian smelters have adopted a cautious approach to manganese ore purchases, reflecting concerns about rising costs and sufficient inventory levels. The high-priced manganese ore acquired during May-July 2024 has increased production costs, making smelters less willing to offer discounts on manganese alloys.

With existing inventories adequate to meet current needs, many smelters are hesitant to commit to new purchases. This combination of factors, including cautious buyer sentiment, production cutbacks, and rising steel prices, has contributed to the overall stability in the manganese ore market.

Import arrivals inches up w-o-w:

Manganese ore imports to India inched up by 5% w-o-w, with shipments totaling 44,386 t between 25 September and 01 October 2024 compared to 42,286 t in the previous week.