Demand for Manganese Ore continues to be sluggish on the back of poor demand for Manganese Alloys. The Manganese Ore market is still finding it difficult to sustain at current price levels.
BHP has reduced its South African Semi Carbonate Manganese Ore prices (Mn 37%) from USD 5.10/DMTU to USD 4.50/DMTU CIF India, and all offers from other miners are more or less at the same levels for the August, 2013 shipments.
However, BHP is still silent on reduction of its high grade Manganese Ore prices which still stands at USD 5.90/DMTU CIF India, but buyers are reluctant to book any quantity at these prices. As a result, miners are under pressure to reduce the prices for High Grade Manganese Ore.
Prices of imported Manganese Ore are under pressure and likely to come down further if the lack of demand persists. The stock levels of Manganese Ore with Ferro Alloy smelters is still low and nobody is willing to take long positions on the Ore unless there is clarity in the direction of Manganese Alloys market.
All the shipments which are scheduled to arrive at Indian ports were booked at previous high prices and the Manganese Alloys production cost will still be under pressure due to this.
Chinese demand for imported Manganese Ore has also come down sharply with a decline of around 20% in June 2013, taking the last six monthly average basis. Lot of Indian Ferro Alloy plants are operating at very low capacity and some of them are completely shut down because of the weak demand and high cost of production.
Imported Manganese Ore prices will continue to be under pressure at least for the time being.
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