India: South African Carbonate Ore Prices Increased by 7% M-o-M in Feb'20
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Manganese ore prices in India remained stable W-o-W amidst low transactions at the ports. Indian Silico Manganese and Ferro Manganese market are continuously under pressure with limited transactions, which has clogged the growth of Manganese Ore prices from South Africa. The prices have also been affected by the pessimistic sentiments from China.
The imported Manganese ore prices in February remained on the higher side after a major steel mill in China, Hebei Steel, increased their Silico Manganese purchase price for February by RMB 600/MT (USD 85.70/MT). The offered prices for the Indian imports are as understated:
| Manganese Ore Average Monthly Price | ||||
| Category | Grade | Prices | ||
| Feb'20 | Jan'20 | Change (%) | ||
| CNF India (USD/dmtu) | Lumps, Mn 38% South Africa | 4.60 | 4.28 | 7.48 |
| Lumps, Mn 44% Fe 5%, Gabon | 4.75 | 4.44 | 6.98 | |
| Lumps, Mn 46% Fe 5%, Australia | 5.07 | 4.77 | 6.29 | |
Chinese Market
Logistics still remain affected by epidemic management, so the transactions remained sporadic with only limited deals taking place at higher levels. Meanwhile, traders had large inventories and were unable to raise the prices further, which capped the prices this week. Although the prices are higher now, the expectation of lowering the prices post-holidays is persistent. Chinese producers feel that once the logistics are streamlined, the supply concern may shrink, as port inventory is high in China.
Gabon
Eramet had to scale back a planned expansion of its Manganese mining operation in Gabon due to continuous deterioration in the global economic outlook, including the uncertainty over the impact of the Novel Coronavirus outbreak in China.
South Africa
UMK announced the offer prices for China for April deliveries late last week, which is unchanged from that of March. Due to high inventory pressure in China, most Chinese traders preferred to wait on the sidelines. Given the strong consumption of Manganese ore in China, it is highly expected that UMK would reduce the prices for April deliveries.
Australia
South32 announced the prices last week that its Manganese ore offer prices to China for March was up by USD 0.58/MT from February. However, traders are not convinced of the increased prices and are willing to negotiate for lower levels.
Future Outlook
Seaborne Manganese Ore prices may come down soon for April deliveries. However, the situation in the Chinese market would be the deciding factor once transportation resumes in a normal flow.
