Manganese Ore prices were rolled over by MOIL in line with the increased prices of imported Ore, and also after BHP's decision to maintain the last offer prices for August, 2013 shipments. BHP prices for high grade Manganese Ore still stands at USD 5.90/DMTU and the price for South African Carbonated Ore by BHP is maintained at USD 5.10/DMTU. Many market participants share the thought, that this move has given support to the falling Manganese Alloy prices as the market sentiments would have been bitter if the Manganese Ore prices had corrected.
Stock level of Manganese Ore is still low with the smelters. Manganese Alloy producers are adopting a cautious approach and not willing to take strong positions due to various factors which include the demand-supply mismatch of Manganese Alloys market and the inherent fear about the future prices of Manganese Ore which still remains unclear although the previous price levels have been maintained and prices are not going to drop at least before August / September, 2013. Chinese demand also plays an important role which is also reported to be weak at the moment.
Indian imports have also become expensive due to the weaker Rupee which also contributes to the high cost of Manganese Ore and in turn, the higher Manganese Alloy production cost.
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