Indian Manganese Ore Consumption Rises by 31% in CY17
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Indian Manganese ore consumption increased by 31% Y-o-Y in CY17. In CY17, Manganese Ore consumption stood at 5.63 MnT while the same in CY16 was 4.27 MnT.
Indian Manganese Ore Imports:
India has been highly dependent on imported Manganese ore as almost half of the consumed commodity is imported from overseas. Moreover, the requirement for manganese ore is expected to commensurately rise to about 11 million tonnes by 2030.
India imported around 3.09 MnT Manganese Ore in CY17, witnessing an increase of nearly 82% Y-o-Y against 1.7 MnT in CY16.
South Africa remained the largest exporter of Manganese Ore to India at 1.88 MnT in CY17, witnessing a massive increase of 109% Y-o-Y against 0.9 MnT in CY16.
Australia was the second largest exporter witnessing an increase of 19% Y-o-Y, followed by Gabon which also recorded an increase of 54% Y-o-Y amongst others.
Considering a boost in Indian steel industry during the first half of 2017, the demand for Manganese alloys marched northwards. Therefore, healthy demand for the alloy has led producers to actively import Manganese ore to fulfill their requirement.
Indian Manganese Ore Production:
Indian Manganese Ore production in CY17 has been almost consistent with that of CY16. The production witnessed in CY17 is around 2.54 MnT while the same in CY16 was 2.57 MnT. There has been marginal fall of 1% in Manganese Ore production in CY17.
India, being the seventh largest Manganese Ore producer has a resource of 495 MnT but its useful reserve is only 93 MnT, which barely makes 19% of the total resources.
MOIL is the largest producer of Manganese ore in India with a production of around 1 MnT annually. According to SteelMint's assessment, out of the 2.5 MnT Manganese Ore production, over 40% is produced by MOIL, and around 35% by private miners like Tata, OMML (Adhunik), Rungta Mines, J K Minerals, SMIORE and few others.
Manganese Ore Prices:
The second quarter of CY17 witnessed a downward correction in Manganese Ore prices on account of decline in manganese alloy market owing to demand-supply mismatch.
However, the same started marching northward during the third quarter when the demand for the commodity was gaining strength in China. With rising demand for manganese alloys, Chinese traders raised their offers for the Manganese Ores that they had booked earlier and stocked in the ports. This in return prompted the global miners to raise their offers as well.
Moreover, the Manganese ore prices strengthened further when its consumption in China was triggered as manganese alloy producers increased their production volume in fear of environmental inspection glooming on their heads. Supply from South Africa and Gabon was also tight during the period which encouraged the commodity's prices to move up.
The Manganese ore prices intensified further as demand for manganese alloys in India and China witnessed a sharp rise. China, being low on manganese alloy production, witnessed a drastic hike in the commodity's prices which lent further support to imported Manganese ore prices.
