India's imported manganese ore prices stable w-o-w; South African lumps drift lower

• Cyclone damage extends GEMCO shutdown
  
  
• Manganese ore arrivals into India down 32% w-o-w
  
  

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

• Australian high-grade manganese ore (46%) remained stable w-o-w at $9.05/dmtu.
  
  
• Gabonese high-grade manganese ore (44%) is priced at $8.45/dmtu, stable w-o-w.
  
  
• South African lumps (Mn 37%) reached a 2-month low of $5.7/dmtu, down $0.30/dmtu, reflecting limited demand in low-grade manganese alloys.
  
  

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: A subdued export market for Indian manganese alloys has dampened demand for imported ore. Global container shortage and rising ocean freights, ranging from an additional $27-50 per container to reach $1,400-1,450 per container for shipments to the EU, present logistical challenges further impacting exports. Additionally, domestic buyers' reluctance to book manganese alloys at higher rates is also driving down silico manganese prices, making producers cautious about purchasing manganese ore at higher rates.
  
  
• Slowing procurement of imported raw material: Indian buyers appear to have secured sufficient manganese ore reserves through purchases over the weeks. This has led to decreased interest in new bookings this week, contributing to limited overall demand.
  
  

Manganese ore imports fall 32% w-o-w: Manganese ore cargo arrivals to India decreased by 32% w-o-w, with weekly shipments reaching 88,785 t between 19 June-25 June, up from 131,405 t in the previous week. The weekly import volume of manganese ore declined from the previous week on limited supplies of high-grade manganese ore from Gabon.

Near-term outlook

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

GEMCO's mine restart delayed: South32's Groote Eylandt Mining Company's (GEMCO) manganese mine in Australia faces a delay in resuming production due to extensive damage from tropical cyclone Meghan. Rehabilitation efforts, including dewatering flooded pits and repairing the port, are expected to take several months.

Given the overall pressure on the manganese alloys market, it seems unlikely that prices of manganese ore will rise anytime soon.