Indian miners trim manganese ore prices across grades for Nov'24 deliveries

• MOIL's higher-grade down 7% m-o-m, lower one drops 1%

  
  
  

• Weak steel demand, global uncertainties drive down prices
  
  

Indian manganese ore producers have reduced their list prices for various grades for November 2024 deliveries, following MOIL's price adjustments. Effective November 1, MOIL reduced prices of grades above 44% by 7% m-o-m, while grades below 44%, including SMGR and fines, witnessed a marginal 1% m-o-m decrease. Across key mining regions, most Indian producers followed suit, with similar price reductions, though a few exceptions were there. This trend is driven by muted steel demand and ongoing global economic uncertainties.

Region-wise price adjustments

Madhya Pradesh: Offers for manganese ore grades below 44% were reduced by 7% m-o-m, except for 37% manganese ore, which saw a slight 4% m-o-m increase. Prices of higher-grade material (44-46%) declined by 5% m-o-m. The price drops can be attributed to fluctuating demand in the region.

A leading miner stated, "The mining sector faces significant uncertainty, making future projections challenging. With many alloy factories shutting down and a lack of inquiries, we found it necessary to reduce prices."

Odisha: Miners in Odisha maintained stable prices m-o-m for 30-32% grade manganese ore, while rates for grades below 30% inched up by 1% m-o-m, in line with MOIL's latest price adjustments. The steady pricing follows market stagnation across the region.

A key miner informed Bigmint, "Alloy producers already hold considerable stocks of manganese ore. Additionally, most of them have shifted to using imported material, leading them to withdraw their bids for domestic ore. As a result, we are maintaining offers steady m-o-m. We are also going to be cautiously monitoring the market scenario for the next two months."

Visakhapatnam: Vizag, an export-centric market for manganese alloys that is known for lower-grade manganese ore production, saw prices of variants below 25% dropping significantly by 24% due to muted demand. The cuts also came amid a range of challenges such as high power tariffs, labour shortages, and increased production costs.

A miner from Vizag said, "Despite incurring losses for the past few months, we are still not receiving sufficient inquiries for ore. When inquiries arrive, they are often much lower than our prices, leading to bid-offer disparities. Weak alloy and steel sectors have compelled us to significantly reduce our offers to remain competitive."

Factors influencing manganese ore prices

Imported ore prices drop m-o-m: Monthly average prices of South African manganese ore (Mn37%) inched down by 2% to $3.86/dry metric tonne unit (dmtu) in October 2024 as against $3.93/dmtu in September. Meanwhile, Australian-origin (46%) manganese ore prices stood at $4.64/dmtu in October as against $5.66/dmtu in September, down by 18%. Additionally, Gabonese (44%) ore was assessed at $4.3/dmtu, a decrease of 19% m-o-m. Uncertainties in alloy demand and supply constraints played a key role in this reduction.

Global miners lower offers for Nov'24 shipments: Key miners such as Eramet and South32 have also reduced their offers for November shipments. Additionally, Eramet has revised its 2024 targets for manganese activities in Gabon, reducing production estimates to 6-6.5 million tonnes (mnt) (against 6.5-7 mnt previously) amid a significant drop in carbon steel output in China, which has led to oversupply. This surplus situation follows lower manganese ore purchases and higher low-grade ore supply from South Africa.

Indian silico manganese prices dip following Oct surge: According to BigMint's assessments on 12 November 2024, prices of the 60-14 grade plunged by INR 300-800/tonne (t) ($4-10/t) w-o-w to INR 65,700-66,250/t ($778-784/t) exw-Raipur. In comparison, October saw monthly average 60-14 tags rising by 4% m-o-m to INR 68,980/t ($820/t) from INR 66,540/t ($791/t) in September.

Domestic silico manganese prices are close to a two-month low, as similar levels were last seen in end-September 2024. Trading activity was subdued this week, which has prompted manufacturers across different regions to reduce production in response to excess inventory levels.

Silico manganese export offers edge up m-o-m: Silico manganese (60-14) export prices witnessed a 4% rise of $29/t to $841/t FOB in October compared to $812/t in September. Meanwhile, silico manganese (65-16) also inched up by 2% ($16/t) m-o-m to $930/t FOB India in October as against $914/t in September.

Outlook

The outlook for the manganese ore market appears uncertain, driven by fluctuating demand and production challenges. Recent price adjustments highlight the impact of growing preferences for imported ore. As a result, miners are adopting a cautious wait-and-watch approach, closely monitoring market conditions before making further pricing decisions.