India: Imported manganese ore prices stable due to subdued demand at higher rates

• Muted order flow in spot market reflects awaiting price discovery
  
  
• Weekly arrivals of imported cargoes rise w-o-w
  
  

Imported manganese ore prices remained constant w-o-w, with variations seen across origins:

Australian high-grade ore: Australian high-grade (46% Mn) ore prices were unchanged to $9/dmtu CNF Vizag (India) due to limited demand of high-grade manganese alloys.

Gabonese high-grade ore: Prices of Gabonese high-grade (44% Mn) ore remained stable w-o-w at 8.45/dmtu CNF Vizag (India), reflecting limited supply and temporary muted demand from global smelters for high grade kept the price flat.

South African lumps: South African lumps (37% Mn) remained at around $6.55/dmtu CNF Vizag (India), inched up by 0.10/dmtu. Cautious buying kept demand flat from Indian smelters. The slight increase in prices could be due to heavy rainfall and floods disrupting manganese ore transportation from Port Elizabeth last week, along with Transnet's force majeure delaying shipments.

The imported manganese ore market has seen a stagnant week characterised by a decrease in inquiries and purchase volumes. Market participants are exhibiting a lack of buying interest, which is hindering deal finalisation and leading to a subsequent decline in demand for manganese alloys from key regions like Europe, the UAE, Egypt, and global steel producers.

Global manganese ore supplies fell 10% m-o-m in April to about 1.5 million tonnes (mnt) due to GEMCO production losses and decreased Gabon imports, causing manganese ore prices to spike in the last month, according to sources.

Factors keeping imported manganese ore stable

Cautious buyers, subdued downstream demand: Trading activity has been subdued this week, with initial interest not translating into significant transactions. This reflects an ongoing disparity between supply and demand. Market participants seem to be adopting a wait-and-see approach, anticipating either price adjustments or a clearer picture of future demand before re-engaging with increased confidence.

Weekly arrivals of imported manganese ore cargo increase 92% w-o-w: Manganese ore cargo arrivals to India increased by 92% w-o-w (Mn37%, Mn44%, and Mn46%), with weekly shipments reaching 249,569 t between 29 May to 4 June 2024, up from 130,185 t in the previous week. The weekly import volume of manganese ore has recovered from the previous week's low volume.