India: Range-bound imported manganese ore prices mask supply-demand imbalance
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- Declining downstream demand weakens ore price-
- Weekly imported cargo arrivals fall by 23%
Imported manganese ore prices maintained a range-bound trend against the past weeks, reflecting balanced market dynamics.
- Gabonese high-grade manganese ore (44%) held at $4.45/dmtu, down by 0.10/dmtu demonstrating continued stability in this segment.
- Australian high-grade manganese ore (46%) saw a slight decrease of $0.10/dmtu, settling at $4.75/dmtu, indicating potential softening in demand.
- South African lumps Mn 37% grade remained stable, at $4.15/dmtu.
This week, the manganese ore market saw stable trade activity, defined by need-based buying. However, a progressive decline in manganese alloy output from Indian smelters had an impact on the market, as fewer inquiries and purchases of manganese ore resulted in consistent prices across the board.
Because of the temporary drop in manganese alloy pricing, smelters in Durgapur, Raipur, and Vizag have begun to reduce production output in response to oversupply, potentially affecting future market dynamics.
This scenario indicates a potential supply-demand imbalance in manganese ore, depending on the shuttered plants' recovery duration and the production levels of remaining smelters.
Manganese ore price viability threatened by downstream concerns. The manganese ore market faced headwinds due to weak demand in the downstream segment. Factors contributing to the current situation include soft demand of manganese alloys in domestic and global, limits. Smelters holding sufficient stock for 3-4 months further reduced immediate demand for fresh manganese ore.
Consequently, manganese ore prices lack upward momentum due to insufficient buying pressure.
Imported cargo arrivals down by 23% w-o-w: Imported manganese ore cargo arrival has dropped by 23% forbMn37%, Mn44%, and Mn46% weekly, reaching 92,350 t between 6-12 March 2024, compared to the previous week's 119,815 t. The weekly import volume of manganese ore has been primarily influenced by concern over demand for manganese alloys.
