India: MOIL cuts manganese ore prices up to 27% for Aug'24

MOIL, India's top manganese ore producer, has set new prices for manganese ore from 1 August, 2024. Mn grades above 44% have witnessed a price cut of 10% m-o-m, while all grades with manganese content below 44%, SMGR 30%, SMGR 25%, fines and chemical grades decreased by 27%.

Factors impacting prices:

Low-grade imported ore prices drop: South African manganese ore (Mn37%) prices decreased by 19% m-o-m in July to $5.1/dmtu as against $6.26/dmtu in June. However, Australian (46%) manganese ore prices inched up by $0.63/dmtu (7%) to $9.65/t in July which was $9.02/dmtu in June. Similarly, Gabonese (44%) ore was assessed at $9.11/dmtu in July, up by $0.67/dmtu (8%) against $8.44/dmtu in June.

The price trend affected India's demand-supply of manganese alloys. Importers faced higher costs of imported ore, while low-grade South African 37% lumps prices dropped due to rising port stockpiles and decreased buying interest.

Domestic silico manganese prices down to 2-month low: Indian silico manganese prices dropped significantly by INR 13,770/t ($164/t) in July to a two-month low, with prices of grade 60-14 falling by 16% m-o-m to settle at INR 71,030/t ($848/t) compared to INR 84,800/t ($1,013/t) exw Raipur in June.

The persistent lack of buying activity of domestic steel mills due to the monsoon season and larger market uncertainties have led to a price decline. Sellers adjusted offers to stimulate demand resulting in lower prices.

Subdued global market impacts export prices: Silico manganese (60-14) export prices witnessed a 17% m-o-m decline of $187/t to reach $886/t FOB in July compared to $1,073/t in June. Silico manganese (65-16) prices decreased by 15% ($183/t) to $1,024/t FOB India in July as against $1,207/t in June.

Indian silico manganese export offers declined m-o-m due to subdued global demand. The ongoing container shortages at ports has exacerbated challenges for exporters further contributing to the overall downward pressure on prices.

Steel billet prices drop 7% m-o-m: Domestic billet prices decreased to INR 39,370/t ($510/t) exw-Raipur in July, down from INR 44,537/t ($470/t) in June, a decline of INR 3,176/t ($38/t). The downtrend reflects the ongoing downtrend in both the finished and semi-finished steel markets leading to cautious buying behaviour. Steel mills have limited purchases and overall steel market weakness is weighing on silico manganese prices.