Indian miners reduce manganese ore offers for August 2024

Indian manganese ore miners have reduced their offers for August 2024 across all grades following price adjustments announced by MOIL, the leading manganese ore producer in India. Starting 1 August, 2024, MOIL has cut prices significantly, with grades above 44% seeing a 10% m-o-m decrease, and grades below 44%, including SMGR 30%, SMGR 25%, fines, and chemical grades, dropping by 27%.

Regional offer adjustments:

• Madhya Pradesh: Offers for all grades below 44% have decreased sharply by 17-24%, while prices for higher grades have also been reduced by 10% m-o-m. The region has faced challenges due to adverse weather conditions and continuous rains, leading many miners to close operations until September 2024. Sluggish domestic demand has further contributed to these temporary shutdowns.A key miner commented, "The slow market demand, driven by falling steel prices, is affecting our production. The recessionary conditions are putting significant pressure on all mining segments. The volatility in steel and manganese alloy markets is making it difficult to plan for the future."
  
  
• Odisha: Miners in Odisha have reduced offers for grades between 30-32% by 19% m-o-m. Offers for grades below 30% have plummeted by 50%, in line with MOIL's price reductions. The key factors behind the price decline include a dull market atmosphere and weak demand from mills."We anticipate price volatility next month due to fluctuating demand and climatic conditions. We have halted new offers but expect to resume in early October," said a key miner.
  
  
• Visakhapatnam: In the Vizag market, known for producing lower-grade manganese ore, prices for grades below 25% have fallen by 14% amid poor market conditions and subdued demand for manganese and its alloys.A miner in Vizag noted, "The sluggish demand has depressed the manganese ore market. With no new inquiries and only previous orders being fulfilled, production costs are rising while profit margins are squeezed. If the current trend continues, it will be challenging for us to sustain operations."
  
  

Factors influencing manganese ore prices:

• Low-Grade imported ore prices: Prices of South African manganese ore (Mn37%) decreased by 19% m-o-m in July, falling to $5.10/dmtu from $6.26/dmtu in June. Conversely, Australian (46%) manganese ore prices increased by 7% to $9.65/dmtu in July from $9.02/dmtu in June. Gabonese (44%) ore prices also rose by 8% to $9.11/dmtu in July from $8.44/dmtu in June.This price trend has impacted India's manganese alloy demand and supply. Importers have faced higher costs for imported ore, while low-grade South African 37% lumps have seen price declines due to rising port stockpiles and reduced buying interest.
  
  
• Domestic silico manganese prices: Indian silico manganese prices hit a two-month low in July, decreasing by INR 13,930/t ($166/t) to INR 70,950/t ($845/t) from INR 84,880/t ($1,011/t) exw Raipur in June. The lack of buying activity from domestic steel mills, attributed to the monsoon and market uncertainties, led to this price decline.
  
  

Outlook:

BigMint anticipates that manganese ore prices will remain stable at current levels for the month, with only minor adjustments expected due to the ongoing off-season. Close monitoring of market demand and global trends will be crucial for making informed business decisions in the near future.