India: Imported manganese ore prices stable w-o-w

Prices of imported manganese ore remained stable w-o-w, amidst limited buying interest from China. Although, there is good demand from the domestic market, June offers from major miners have led to a lacklustre market. Most of the major miners from South Africa, Gabon and Australia have reduced their prices for June shipments.

Meanwhile, in India, demand for manganese ore remains high in line with the steady demand for silico manganese. Although, there is a little tightness in domestic demand for silico manganese, exports demand rebounded last week as most steel mills started procuring fresh orders for the next quarter.

Key highlights
Manganese ore offers to China down in June:
Major manganese ore miners reduced their prices for June deliveries which were easily accepted in the market. Meanwhile, miner Tshipi, which has mines across countries, has increased prices of 36% South African blocks, for June deliveries, which led to a marginal increase in prices of South African ores.

Chinese port inventory down 0.3 mnt
Chinese manganese ore inventory at ports reduced by 0.3 mnt after the market returned from holidays. Current stocks at Chinese ports are at 6.5 mnt as against 6.7 mnt seen in the previous week. Meanwhile, Tianjin Port currently has an inventory of 4.5 mnt.

Current assessment
Prices of imported manganese ore this week:
CNF China, Mn 37%, South African origin: $4.5/dmtu;
CNF China, Mn 44%, Gabonese origin: $4.9/dmtu;
CNF India, Mn 37%, South African origin: $4.65/dmtu;
CNF India, Mn 44%, Gabonese origin: $5.05/dmtu;
CNF India, Mn 44%, Australian origin: $5.4/dmtu

Outlook
Indian manganese ore miners are now in a wait-and-watch mode as most producers are sitting on higher inventories and anticipating further correction in prices.