India: Imported manganese ore sees price uptick on improved inquiries

• Ore prices rose due to growing demand for manganese alloys
  
  
• Weekly import cargo arrivals fall by 33% w-o-w
  
  

Imported manganese ore prices have increased marginally, particularly in Australian and South African grades, while Gabonese prices have remained steady.

• Australian high-grade manganese ore (46%) saw an increase of $0.10/dmtu, settling at $4.7/dmtu, indicating potential improvement in demand.
  
  
• South African lumps Mn 37% graded experienced a minor increase of $0.10/dmtu, reaching $4.05/dmtu, suggesting a possibility of limited upward momentum in near term.
  
  
• Gabonese high-grade manganese ore (44%) held steady at $4.44/dmtu, demonstrating continued stability in this segment.
  
  

Manganese ore prices increase as demand imrpves: Mn ore offers to India have increased due to the recent surge in demand for Indian manganese alloys around the world, and mine producers anticipate that ore demand will increase in the near future. This optimism is supported by a notable rise in inquiries for reservations made in March 2024, which suggests that worries about an increasing trend in prices are becoming more pressing.

At the present price of $4.44/dmtu, a manufacturer just inked a contract to obtain a 7,000t cargo of grade 44 Gabonese ore, scheduled for delivery in March, highlighted a source in conversation with BigMint.

Also, while Indian smelters have not greatly expanded production, they are actively acquiring ore in expectation of future price increases. This buying activity has caused a small increase in imported manganese ore prices.

Rising concern of production costs in South Africa pushes price upward: Concerns about potential power outages in South Africa, coupled with existing cost increases, are pushing up production costs by 5-10%. This exerts upward pressure on manganese ore prices globally, further exacerbating the price hike.

Given the current situation, a significant smelter from Raipur voiced hope for the long run. Even if local production takes some time to reach historical levels, the market for manganese ore is predicted to stay robust.

The manganese ore market appears to be in good shape, with the possibility of further price increases in the near future due to the combination of growing demand and production cost pressures. This situation could have an effect on downstream businesses that depend on manganese ore.

Imported cargo arrivals down by 33% w-o-w: Imported manganese ore cargo arrivals has decreased by 33% in manganese ore (Mn37%, Mn44%, and Mn46%) weekly import shipments, reaching 76,200 t between 14 February 2024-20 February 2024, compared to the previous week's 114,060 t.