India: South African, Gabonese manganese ore offers dip; Australian prices hold steady

• A softening ferro alloys market is dampening imported manganese ore appetite
  
  
• Imported ore cargo arrivals drop 54% w-o-w
  
  

India's imported manganese ore market is currently characterized by contrasting price movements. While prices of certain grades of ore have softened due to buyer resistance, other grades, particularly those originating from Australia, have been relatively stable.

• South African lumps of Mn37% grade were unchanged w-o-w at $4.65/dmtu, down by $0.25/dmtu, due to reduced inquiries and rising stockpiles at South African ports.
  
  
• Gabonese high-grade manganese ore (44%) was priced at $9.1/dmtu, down by $0.10/dmtu due to weak demand for high-grade manganese alloys.
  
  
• Australian high-grade manganese ore (46%) stayed firm at $9.7/dmtu, indicating potential softening in demand.
  
  

Factors keeping imported manganese ore stable

Manganese alloys slump halts imported ore purchases: Imported manganese ore prices fell slightly this week due to reduced inquiries and purchase volumes, driven by a sluggish export market for Indian manganese alloys. The lack of buying interest hindered deal finalization and contributed to the price decline. Indian manganese alloys smelters delayed purchases of imported manganese ore due to a combination of factors listed below:

Subdued demand: Weak domestic demand for manganese alloys led to a significant fall w-o-w. Silico manganese prices in India dropped w-o-w by INR 1,000/t ($12/t) to INR 68,200-68,800/t ($814-822/t) exw across markets (Raipur, Durgapur and Vishakhapatnam). Indian domestic silico manganese prices have continued their downward trajectory, hitting over a three-month low. This forced smelters to reduce their own offers for imported ore in an attempt to attract buyers.

Meanwhile, ferro manganese (HC70%) prices persisted with their downtrend w-o-w by INR 2,100/t ($25/t) in Raipur, reaching INR 75,600/t ($903/t) exw. Meanwhile, in Durgapur, prices dropped by INR 1,800/t ($21/t) w-o-w to INR 75,200/t ($898/t). Lower demand and buyers' resistance to higher offers were cited as reasons for the price correction.

In China, acceptance of high ore prices was low, with the market in a wait-and-see mode, hoping for good news and resisting further hikes in prices of imported ore. Furthermore, there was limited global acceptance of elevated prices of imported manganese ore. This dampened overall demand and exerted downward pressure on import prices.

Weak steel market: The broader weakness in the steel market was reflected in the domestic billet index which stood at INR 38,600/t ($461/t) exw-Raipur, down by INR 1,300/t ($16/t) w-o-w on 26 July. This trend has further reinforced the cautious buying behaviour. These factors suggested a potential slowdown in demand for imported manganese ore till the domestic silico manganese market stabilizes.

Imported cargo arrivals fall 54% w-o-w: Manganese ore cargo arrivals to India plummeted by 54% (Mn37%, Mn44%, and Mn46%), with weekly shipments reaching 102,590 t over 17 -23 July, down from 223,700 t in the previous week.