Imported Manganese Ore prices slipped despite strengthening demand of alloys in the Indian market as Chinese demand stays low.
The Manganese Ore market is finding it difficult to sustain as Manganese Alloy producers are adopting a cautious approach and are depicting reluctance in booking Manganese Ore at higher prices. Manganese ores movement at Chinese ports remains calm. In terms of demand from silico manganese, the market has been affected by environment protection campaign and the limited supply of power in Inner-Mongolia region which has resulted in output cuts.
Chinese demand plays an important role, and a weak demand for alloys in the country owing to soft steel market has prompted the buyers to resist high offers. Hence, in line with the same, the Indian buyers are also demanding for lower offers.
SteelMint assessed Manganese Ore prices at 38% South African carbonated ore at USD 5.9/dmtu, 44% grade ore from Gabon at USD 6.7/dmtu and 46% grade Australian ore at USD 6.9/dmtu. However, the Chinese buyers are heard to have to negotiate to pull the price lower than the aforementioned levels.
On the future outlook, some of the market participants are of the view that prices may come down further while others expect the same to remain firm owing to higher tariff prices in South Africa due to the winter season.
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