India: Imported manganese ore prices surge to 4-month high; global miners prioritise China

• Global manganese ore supply limited for Indian smelters
  
  
• South32's price hike boosts South African ore to $4.65/dmtu
  
  

Global manganese ore prices have seen a slight increase this week, reaching a four-month high last seen since October 2024. This uptick is primarily attributed to declining port inventories and limited supplies from miners, which have tightened the market.

• Australian high-grade ore: Australian high-grade (46% Mn) ore witnessed an increase of $0.05/dmtu to $5.21/dmtu due to constraint supply.
  
  
• Gabonese high-grade ore: Prices of Gabonese high-grade (44% Mn) ore edged up by $0.04/dmtu to $4.87/dmtu, reflecting rising production and handling costs, along with ongoing rail maintenance impacting supply.
  
  
• South African lumps: South African lumps (37% Mn) saw a slight rise of $0.07/dmtu to $4.64/dmtu
  
  

Market overview

Limited manganese ore supply hurts smelters: Global manganese ore suppliers are restricting supply to Indian smelters, leading to increased pressure on the domestic market. Some miners have prioritised increasing their supplies to China, resulting in constrained availability of ore for Indian producers. Limited supply has supported prices of imported manganese ore. South32, a prominent global miner, recently announced a price increase for 37% grade South African semi-carbonated manganese ore lumps, which rose by $0.60/dmtu m-o-m for March shipments, currently priced at $4.65/dmtu CIF China. This shift in focus towards the Chinese market is further tightening supplies for Indian smelters and impacting their operational dynamics.

Manganese alloys prices surge: On 10 February, the Indian rupee reached the 88 mark against the US dollar, reflecting a 5% depreciation since April 2024. This decline has intensified financial pressures on smelters, who now face higher costs for imported manganese ore. In response to rising demand and limited supply, Indian manganese alloy prices have increased w-o-w. Indian silico manganese prices surged to a seven-month high, rising by INR 1,550/t ($13/t) w-o-w to INR 72,900-74,300/t ($839-855/t) in key regions such as Durgapur, Raipur, and Vizag. Concurrently, ferro manganese (HC 70%) prices also climbed, increasing by INR 1,000/t ($12/t) to INR 76,000/t ($875/t) exw in Durgapur, while prices in Raipur rose by INR 600/t ($7/t) to the same level. The price hikes are primarily driven by production cuts and improved export inquiries amid a tightening market.

Weekly manganese ore cargo arrivals fall: Manganese ore imports to India decreased by 74% w-o-w, with shipments totalling 75,950 between 29 January -04 February, 2025.