India's imported manganese ore prices rise further as global offers edge up

• Imported manganese ore prices surge
  
  
• Global miners lift offers m-o-m
  
  

Imported manganese ore prices increased up to 18% increase w-o-w, with variations seen across origins:

Gabonese high-grade ore: Prices of Gabonese high-grade (44% Mn) ore climbed by $0.85/dmtu (14%) to $7.05/dmtu, reflecting limited supply and rising demand from global smelters for high grade.

Australian high-grade ore: Australian high-grade (46% Mn) ore witnessed a similar increase of $0.95/dmtu (14%) to $7.55/dmtu due to supply constraints and rising inquiries from Chinese buyers.

South African lumps: South African lumps (37% Mn) surged by $1.3/dmtu (25%) to $6.4/dmtu. Rising demand from Indian smelters supported the price uptrend.

Market overview:

Indian smelters secure imported cargoes at higher offers: Indian smelters are scrambling to secure manganese ore supplies amid concerns over rising prices and potential shortage. Recent bulk purchases by key Indian importers highlight this proactive approach

• 20,000 t of South African origin Mn 37% lumps were procured at $5.8-$6.1/dmtu (delivered to Haldia)
  
  
• 40,000 t of Gabonese Mn 44% lumps secured at $7.15/dmtu (delivered to Vizag)
  
  

These purchases indicate smelter acceptance of higher prices and potentially strong future demand, buoying miners' confidence.

Global manganese ore miners lift offers:Global manganese ore prices are on the rise, fuelled by a rebound in demand for manganese alloys, especially in China. Key miners have boosted prices for Chinese shipments, and this trend is impacting India, the world's key manganese alloy producers. Indian importers face higher costs for imported ore, a key raw material.

Furthermore, global manganese ore suppliers are hiking prices for June shipments to China. UMK increased its 36% grade by $2.00/dmtu to $6.20/dmtu CIF China, while Jupiter Mines' high-grade offering jumped to $6.30/dmtu, a significant rise from May's price. These hikes suggest tighter supply or rising production costs, potentially impacting steel manufacturers.

India's weekly cargo arrivals up 10% w-o-w: A confluence of factors is contributing to a potential uptrend in the global manganese ore market, with India playing a key role. Increased domestic demand for manganese ore is driving activity in the imported ore market, as evidenced by a 10% w-o-w rise in cargo arrivals at Indian ports (reaching 121,766 tonnes between 01 May and 07 May, 2024).

These price increases suggest potential tightening of global supply or rising production costs, which could ultimately impact steel manufacturers. Close monitoring of global market dynamics, including supply-side developments and alloy demand trends, is crucial for industry participants to navigate this evolving price environment.