India: Imported manganese ore prices under pressure due to weak alloys demand

• Drop in manganese alloys demand hits imported ore inquiries
  
  
• Arrivals of imported ore cargoes rise by 52% w-o-w
  
  
• MOIL lowers manganese ore prices for Nov'24
  
  

The Indian imported manganese ore market experienced a slight downturn this week, primarily driven by a decrease in domestic and overseas demand for manganese alloys across grades. This weakened demand prompted buyers to adopt a more cautious approach, resulting in reduced purchase commitments and subsequently softer ore prices.

• Gabonese high-grade manganese ore (44%) was priced at $4.05/dmtu, down by $0.05/dmtu due to weak demand for high-grade manganese alloys.
  
  
• Australian high-grade manganese ore (46%) prices fell by $0.05/dmtu to $4.35/dmtu, indicating potential softening in demand.
  
  
• South African lumps Mn 37% grades were at the same level this week, at $3.85/dmtu, suggesting a possibility of limited upward momentum amid need-based demand.
  
  

Imported manganese ore prices stable

Manganese alloy slump stalls imported ore purchases: Imported manganese ore prices declined slightly this week due to reduced inquiries and lower purchase volumes, driven by a sluggish export market for Indian manganese alloys. The lack of buying interest hindered deal finalization and contributed to the price decrease. Indian manganese alloy smelters delayed their imported manganese ore purchases due to several factors:

Indian manganese alloys prices remain under pressure: Weak domestic demand for manganese alloys led to a significant w-o-w decline. Indian silico manganese prices have declined, with the 60-14 grade falling by INR 450/t to INR 66,600-67,600/t exw. Export prices for 65-16 grade also decreased by $14/t to $912/t FOB Vizag/Haldia. Weak demand, festival season pressures, and lower offers have contributed to these declines.

Meanwhile, Indian ferro manganese prices have declined this week due to weak demand and resistance to higher prices. HC70% prices fell by INR 700-900/t in Raipur and Durgapur, while HC75% export prices decreased by $3/t to $927/t FOB Vizag/Haldia.

Bearish steel market sentiments: The domestic steel billet index also inched down w-o-w by INR 350/t ($4/t) and stood at INR 39,050/t ($464/t) exw-Raipur on 30 October. This further reinforced cautious buying behaviour. These factors suggest a potential slowdown in demand for imported manganese ore until the domestic silico manganese market stabilises.

Imported cargo arrivals increase 52% w-o-w: Manganese ore cargo arrivals to India increased by 52% (Mn37%, Mn44%, and Mn46%), with weekly shipments totaling 75,514 t between 16 October and 22 October, up from 49,750t in the previous week.

MOIL announces Mn ore price reduction for Nov'24: MOIL, a leading Indian manganese ore producer, has implemented a price reduction for its products, effective November 1, 2024. Grades above 44% will see a 7% decrease, while grades below 44%, including SMGR and fines, will be reduced by 1% month-over-month.

This price reduction reflects the current market dynamics and may have implications for the domestic manganese ore market and, consequently, the silico manganese industry.