India's imported manganese ore prices stable w-o-w

• Low-grade ore piles up as alloy demand falters
  
  
• Manganese ore arrivals into India rise w-o-w
  
  

Prices of imported manganese ore have been range-bound for the past two weeks.

• Australian high-grade manganese ore (46%) prices remained stable w-o-w at $9.7/dmtu.
  
  
• Gabonese high-grade manganese ore (44%) is priced at $9.1/dmtu, stable w-o-w.
  
  
• South African lumps (Mn 37%) prices reached a 2-month low of $4.45/dmtu, down by $0.20/dmtu, reflecting noticeable increase in South African supplies of low grade.
  
  

Imported manganese ore prices in India exhibited stability this week. Weak export markets for Indian manganese alloys, coupled with global container shortage and rising freight costs, have curbed demand for imported ore. Recent buying has also fulfilled near-term demand further limiting bookings.

Factors keeping prices range-bound

Lower inquiries, limited bookings: Imported manganese ore prices in India have remained relatively stable over the last two weeks. This can be attributed to:

• Weak export market for Indian manganese alloys: The subdued export market for Indian manganese alloys has curtailed demand for imported ore. Global container shortages and higher freight rates for overseas shipments, coupled with prevailing logistical hurdles, have further impeded exports. Moreover, domestic buyers' resistance to procure manganese alloys at elevated prices is exerting downward pressure on silico manganese values, inducing a cautious approach among producers towards manganese ore purchases at higher costs.
  
  
• Slowing procurement of imported raw material: Indian buyers appeared to have secured sufficient manganese ore reserves of low grade through purchases over the weeks. This has led to decreased interest in new bookings this week, contributing to limited overall demand.
  
  

The manganese ore market is experiencing significant volatility. Following production and shipping challenges encountered by Gemco for high-grade ore, a sharp increase in prices across all ore grades materialised. Consequently, market participants uniformly adjusted their pricing strategies upward, accompanied by increased sales and shipment volumes. One market participant said, "The entire inventory of manganese, irrespective of grade, has been released into the market, extending beyond semi-carbonate ore."

Manganese ore imports rise 229% w-o-w: Manganese ore cargo arrivals to India increased by 229% w-o-w, with weekly shipments reaching 337,081 t between 24 July-30 July, up from 102,590 t in the previous week.

Near-term outlook

The future trajectory of prices hinges on the export market's recovery and prevailing logistical challenges. A rebound in manganese alloys exports and improvement in steel market sentiments could trigger higher ore demand and prices, while improved container availability and normal freight costs may facilitate increased import activity.