India: Miners reduce prices of higher-grade manganese ore for Dec'24

• MOIL's higher-grade ore tags inch down 3% m-o-m
  
  
• Declining steel, Mn alloys demand weighs on prices
  
  

Indian manganese ore producers revised their prices for December 2024 deliveries in response to MOIL's recent adjustments. From December 1, MOIL reduced prices of grades above 44% by 3% m-o-m, while grades below 44%, including SMGR and fines, saw a slight increase of 3-5%. Following this, most Indian producers in key mining regions implemented similar price cuts for higher grades while keeping tags mostly stable for variants with lower manganese content, influenced by weak steel and manganese alloy demand.

Region-wise price adjustments

Madhya Pradesh: Manganese ore grades above 44% saw a 9% m-o-m price reduction in Madhya Pradesh, due to ongoing weak demand and adequate inventories with smelters.

A leading miner stated, "Alloy producers currently hold substantial manganese ore inventories and have increasingly turned to imported materials, prompting them to retract their bids for domestic ore. Consequently, we are trimming offers m-o-m and hoping for some positive shifts in the market in the coming month."

Odisha: Miners in Odisha reduced prices of 30-32% grade manganese ore by 3% m-o-m, in contrast to MOIL's latest adjustments. The generally stable pricing reflects ongoing market uncertainty in the region.

A key miner informed Bigmint, "The mining sector is experiencing considerable uncertainty, complicating future projections. With numerous alloy factories closing and a lack of inquiries, it has become necessary to lower prices in response to current market conditions and subdued demand."

Andhra Pradesh: In Vizag, an export-oriented market for manganese alloys, prices of variants below 25% declined by 7% m-o-m due to subdued demand. The price cuts were also influenced by challenges such as elevated power tariffs and increased production expenses.

A miner from Vizag said, "Despite persistent losses recently, inquiries for ore remain insufficient, and when received, they often fall below our prices, creating significant bid-offer gaps. The weak alloy and steel sectors have forced us to lower our offers substantially to stay competitive."

Factors influencing manganese ore prices

Imported ore prices move down m-o-m: Monthly average prices of Australian-origin ore (Mn46%) fell 6% m-o-m to $4.36/dmtu in November, while Gabonese material (Mn44%) dropped 6% m-o-m to $4.06/dmtu over the same period. However, South African manganese ore (Mn37%) inched up m-o-m to $3.94/dry metric tonne unit (dmtu) in November 2024 from $3.86/dmtu in October.

Indian smelters have been cautious in material procurement, prioritising the use of existing inventories. Despite strategic production adjustments, diminishing steel prices, coupled with weak demand for manganese alloys, have contributed to a correction in the imported manganese ore market.

Indian silico manganese prices fall m-o-m: Indian silico manganese prices declined m-o-m, with the monthly average for the 60-14 grade dropping by 4%, or INR 3,000/t ($35/t), to INR 65,900/t ($776/t) exw-Raipur in November from INR 68,900/t ($812/t) in October, according to BigMint's data.

Domestic silico manganese prices faced pressure due to weak demand in the steel sector, as mills adopted more cautious procurement strategies. Despite efforts by smelters to reduce production in response to market surplus, these measures failed to improve sentiment, contributing to continued price declines. The market remains subdued amid these challenging conditions.

Silico manganese export offers decline m-o-m: India's silico manganese (60-14) export prices dropped 4% m-o-m to $805/t FOB in November from $840/t in October. Similarly, the 65-16 grade fell 4% to $891/t FOB in November, compared to $929/t in October.

The m-o-m decrease was driven by weak global demand and surplus supply. Additionally, aggressive low offers from Chinese exporters further suppressed export prospects, contributing to pricing pressure and a decline in market activity.

Outlook

The outlook for manganese ore prices remains cautious, with weak demand, surplus supply, and ongoing global uncertainties. Prices are expected to stay under pressure as steel and alloy sectors continue to face challenges, which will limit market recovery.