Oversupply and low demand are pulling down the seaborne Manganese ore market. Major importers like China and India are postponing their shipments from South Africa as the alloy manufacturers hope the prices to fall further. With the dipping Manganese alloy prices, the producers are approaching to the cost line and the buying interest of steel manufacturers are tepid. In addition to this, the present inventory levels with the producers are restraining them from booking any more consignments.
Silico Manganese Prices have bottomed out and the producers are dealing at lower levels, with few, selling below their production cost and the situation doesn’t seem will change for a while. The prices of Ferro Manganese are however a bit stable, but this stability is not because of better market conditions instead it’s due to comparatively fewer producers supplying in the domestic market.
Prices for Australian Lumps, Mn 46%, Fe 5% is down to USD 5/dmtu CIF India. South African Carbonate Ore (Lumps, Mn 37-38%) is down to USD 4.30/MT CIF India, and Manganese Ore Lumps, Mn 44%, Fe 5% from Gabon is down to USD 4.65/dmtu for December Shipments. Prices have fallen significantly by up to 11% M-o-M in line with low transactions.
| Prices of Manganese Ore: CNF India (Oct’19) | |||
| Grade/Location | Week1 | Week4 | % Change |
| Lumps, Mn 38% South Africa | 4.8 | 4.3 | -10 |
| Lumps, Mn 44% Fe 5%, Gabon | 5.25 | 4.65 | -11 |
| Lumps, Mn 46% Fe 5%, Australia | 5.65 | 5 | -12 |
Chinese Market
In line with higher inventories and weak buying interest, the Manganese ore spot market is falling down and any stability right now is highly unlikely. Meanwhile, due to various series of factors such as environmental protection, power curtailment, and steel mill shut down in the downstream alloy market, the pressure on the alloy market is also greater. Most manganese ore importers said that if there is no obvious operational space, they will consider postponing the shipment of manganese ore in the coming month. The spot transaction of Manganese ore remained weak and the inventory in hand is forbidding the producers to buy more, given the present market scenario.
On the future outlook, prices of Manganese Ore may reduce further, as the miners are competing for shipments, and the buyers are resistant to purchase any further stock.
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