India: MOIL cuts high-grade manganese ore prices, lifts lower grades for Dec'24

• High grade imported Mn ore prices slide amid cautious buying

  
  
  

• Indian SiMn tags fall as smelters battle weak demand

  
  
  

MOIL, India's foremost producer of manganese ore, has revised its pricing structure for December 2024 deliveries. Grades above 44% will see a 3% price reduction, while those below 44%, including SMGR and fines, will be adjusted slightly up by 3-5% m-o-m.

Factors impacting MOIL's price revision

Imported ore prices trend down m-o-m: Monthly average prices of South African manganese ore (Mn37%) inched up m-o-m to $3.93/dry metric tonne unit (dmtu) in November 2024, up slightly from $3.86/dmtu in October. However, Australian-origin ore (Mn46%) fell 6% m-o-m to $4.36/dmtu, while Gabonese material (Mn44%) dropped 6% to $4.06/dmtu over the same period.

Indian smelters exercised caution in procuring material, focusing more on utilising existing inventories. Additionally, despite strategic production adjustments, stable steel prices and weak manganese alloy demand led to a correction in the imported manganese ore market.

Indian silico manganese prices fall m-o-m: Monthly average prices of Indian silico manganese (60-14) prices dropped 4% or INR 3,000/t ($36/t) m-o-m to INR 65,900/t ($780/t) exw-Raipur in November from INR 68,900/t ($815/t) in October, as per data maintained with BigMint.

Domestic silico manganese prices were under pressure this month, as steel mills grappled with weak demand and adopted a conservative procurement strategy. Given the surplus supply in the market, smelters' efforts to curb production were not able to lift sentiments.

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 this month, compared to $929/t in October.

The m-o-m decrease was driven by weak global demand and surplus supply. Coupled with aggressively low offers from Chinese exporters, these factors dampened export prospects.

Billet prices inch down m-o-m: Domestic billet prices decreased by INR 1,400/t ($17/t) to INR 39,200/t ($464/t) exw-Raipur in November from INR 40,600/t ($480/t) in October. Prices slid, influenced by subdued market sentiments and a noticeable decline in demand across the finished steel segments. This downtrend led sellers to reduce spot offers in an attempt to attract buyers and remain competitive.