India's manganese ore import prices dip on weak demand

• Logistical challenges curb manganese alloys exports
  
  
• Producers implement strategic output cuts amid volatility
  
  
• Manganese ore cargo arrivals increase w-o-w
  
  

Manganese ore import prices have undergone a modest correction in recent weeks. This softening can be primarily attributed to a period of heightened volatility in the manganese alloys markets. Additionally, decreased production in the declining manganese alloys markets is also dampening demand.

• Gabonese high-grade manganese ore (44%) prices stood at $9/dmtu, down 0.15/dmtu w-o-w.
  
  
• South African lumps (Mn 37%) reached $5.3/dmtu, down $0.25/dmtu, reflecting limited demand for low-grade manganese alloys.
  
  
• Australian high-grade manganese ore (46%) remain unchanged w-o-w to $9.6/dmtu.
  
  

Factors impacting ore prices

Logistical bottlenecks, geopolitical tensions hinder exports: The Indian manganese alloys export industry faces a confluence of logistical and geopolitical headwinds that hinder demand from overseas:

• Global container scarcity: A severe shortage of empty containers across the global shipping industry significantly restricts export opportunities for Indian manganese alloys producers. This logistical bottleneck limits buyer access to Indian products.
  
  
• European summer seasonality: A seasonal slowdown in buying activity is currently underway in the European market, a key destination for Indian manganese alloys. The ongoing summer holiday period, expected to last until July, has further dampened export demand.
  
  
• MENA geopolitical tensions: Heightened geopolitical tensions in the Middle East and North Africa (MENA) region have led to a decline in import inquiries from these markets. This adds another layer of complexity to the export environment. All of these factors combine to keep imported ore inquiries at a minimum, which led to a decline in ore prices.
  
  

Market uncertainty triggers production cuts: Indian manganese alloys producers have taken strategic measures in response to a period of market uncertainty. Key producers located in Raipur, Vizag, and Durgapur have implemented production cuts by 30-40% to mitigate potential losses. In some cases, smelters have put their furnaces for maintenance.

These production adjustments have led to a decline in inquiries for imported manganese ore. With lower alloy production, the immediate demand for raw materials has softened.

Manganese ore cargo arrivals rise w-o-w: Manganese ore cargo arrivals to India rose exponentially by 139% w-o-w, with weekly shipments reaching 215,411 t between 3-9 July from 90,040 t last week.

The future trajectory of manganese ore prices hinges on developments in the interconnected manganese alloys markets. Closely tracking production levels, demand patterns, and price movements will throw up valuable insights into potential shifts in ore demand and pricing.