India: Miners lift manganese ore offers for Feb'25 on global cues

• MOIL raises manganese ore prices for Feb
  
  
• Strong import offers prop up domestic tags
  
  

Indian manganese ore producers have raised prices for February 2025 deliveries, prompted by MOIL's recent hike. Effective 1 February 2025, MOIL raised offers for grades above 44% by 3.5% and below 44% by 8.2% m-o-m, BigMint learnt from sources. Meanwhile, tags of SMGR (Mn 30%, Mn 25%, and Mn 20%) and fines grades were raised by 8.2%.

In response to MOIL's revised offers, leading Indian producers implemented comparable price increases for both higher-grade (manganese content above 44%) and lower-grade (below 44%) ore.

Region-wise price adjustments

Madhya Pradesh: Manganese ore grades below 44% saw a 12% m-o-m price hike in Madhya Pradesh, while higher grades (over 44%) saw an increase of 5%. The price increase aligns with MOIL's revision and the rise in manganese ore offers in the export market, as leading global miners raised their prices. Additionally, the overall surge in demand for manganese alloys further supported the upward momentum in pricing.

A leading miner noted, "After a period of price stability, miners in this region are witnessing a positive shift in the manganese ore market. The market is clearly moving towards higher demand for ore, driven by the growing need for manganese alloys, which has created a favourable outlook for the sector."

Odisha: Prominent Odisha-based miners also lifted tags of 30-32% grade manganese ore by 7% m-o-m, in response to MOIL's latest adjustments. Another grade, 28-30%, experienced a rise of 14% m-o-m. The increase in offers follows improved market conditions and rising demand for ore.

A key miner informed BigMint, "The market has experienced a steady increase in offers over the past two months, as prices had previously reached unsustainable lows, resulting in losses for miners. Currently, production cuts by miners have led to material shortages, causing a significant spike in manganese ore prices in the region."

Andhra Pradesh: Miners in Vizag, an export-centric region and a key producer of low-grade manganese ore (below 25%), increased their offers by 8% m-o-m. The uptrend follows rising demand for manganese ore and tight supply in the region, resulting in reduced inventories among alloy producers.

A miner from Vizag explained, "The rise in offers within the region is largely driven by stronger export market conditions, with key miners increasing their offers. The uptrend in imported ore offers has directly influenced domestic manganese ore prices."

Factors influencing manganese ore prices

Imported ore prices inch up m-o-m in Jan'25: South African-origin manganese ore (37%) prices saw a slight 3% rise to a monthly average of $4.2/dry metric tonne unit (dmtu) in January 2025, compared to $4.07/dmtu in December 2024. Meanwhile, for manganese ore of Australian (46%) origin, prices edged up by 2% to $4.55/dmtu in January as against $4.48/dmtu in December. The Gabonese-origin variant (Mn 44%) inched up by 4% to $4.37/dmtu in January against $4.2/dmtu in December.

Global miners lift manganese ore offers for Feb'25: Key players such as UMK and Eramet Comilog increased their prices for February 2025 shipments, elevating India's import tags. In particular, Eramet Comilog, a leading manganese ore exporter from Gabon, set its February 2025 shipment prices of Mn 44.5% lumps at $4.3/dmtu and 43% grade chips at $4.1/dmtu, both CIF China. Both prices reflect a m-o-m increase of $0.2/dmtu.

Meanwhile, South32, another leading global miner, kept prices of 37% grade South African semi-carbonated manganese ore lumps steady m-o-m for February 2025 shipments. Prices stood at $4.05/dmtu CIF China.

However, United Manganese of Kalahari (UMK) maintained its prices of 36% grade lumps unchanged m-o-m at $3.90/dmtu.

Seller-driven dynamics push up SiMn tags in Jan: In January, the monthly average price of Indian silico manganese (60-14) climbed up by INR 3,700/tonne (t) ($43/t) m-o-m to INR 69,800/t ($806/t) exw-Raipur from INR 66,100/t ($764/t) in December 2024, as reported by BigMint.

Domestic silico manganese prices surged m-o-m, driven by limited supply and strong seller-driven market dynamics. Demand increased, as buyers were eager to secure material amid tightening availability.

Outlook

The outlook for the manganese ore market is positive, driven by improved sentiments, rising inquiries, and increased global miner offers. These factors suggest upward price momentum and sustained demand in the near term.