India: Imported manganese ore trade activities slow amid cautious procurement

• Weak manganese alloys demand leads to strategic buying
  
  
• South 32 GEMCO to restart manganese ore mining in June
  
  
• Weekly cargo import volume declines slightly
  
  

Imported manganese ore prices saw a slight increase w-o-w, but this was overshadowed by a sluggish market marked by limited buying activity.

Gabonese high-grade ore:* Prices of Gabonese high-grade (44% Mn) ore inched up by $0.10/dmtu to $ 7.15/dmtu w-o-w, reflecting limited supply and temporary muted demand from global smelters for high grade kept the price in same range.

Australian high-grade ore:* Australian high-grade (46% Mn) ore inched up by $0.05/dmtu to $7.6/dmtu due to limited demand of high grade manganese alloys.

South African lumps:* South African lumps (37% Mn) remained slightly up by 0.05/dmtu, reaching $6.45/dmtu. Cautious buying kept demand flat from Indian smelters.

Market overview

Cautious procurement dampens activity in manganese ore market: Market participants are prioritising cautious, strategic purchasing strategies in response to weak demand for manganese alloys. This approach, evident in both domestic and overseas markets, is characterised by a reluctance to commit to large purchases. Finalising deals has become more challenging due to this cautiousness, hindering overall market momentum. This shift towards strategic procurement can be attributed, in part, to a lack of confidence in the near-term demand outlook for manganese alloys.

Silico manganese prices tumble in India: Silico manganese prices in India dipped by INR 4,950/t ($60/t) due to need-based buying and a cautious domestic market. This pressured smelters, who are now strategically importing manganese ore to control costs. The price decline reflects a correction in the Indian market, with near-term uncertainty.

GEMCO to restart manganese ore mining in June: South32's GEMCO manganese ore mine (jv w/ Samancor) resumes mining in June (post-March suspension) to build stockpiles before the wet season. Recovery focuses on dewatering and repairs from cyclone damage. Wharf restart expected in Q3FY'25 with exploration of alternative shipping options.

Weekly arrivals of imported cargoes fall by 22% w-o-w: Manganese ore cargo arrivals in India witnessed a decrease of 22% for Mn 37%, Mn 44%, and Mn 46 grades. This comes after a previous week with higher volumes, with weekly shipments reaching 139,539 t between 8 -14 May, 2024, compared to 178,514 t. This decline reflects a shift in buying patterns by smelters, who are now strategically acquiring lower volumes due to an uncertain market outlook.