Imported manganese ore offers to India rise by up to 12% on buying interest

• Increase in manganese alloys prices
• Indian manganese alloy exports rise on European buying
• Malaysia’s silico manganese supplies curtailed on increased Covid cases

Imported manganese ore prices increased by up to 12% for July shipments on higher demand from the manganese alloys producers. Rallying prices of manganese alloys further helped boost manganese ore prices.

Imported manganese ore offers
Prices of imported manganese ore this week:
CNF China, Mn 37%, South African origin: $4.7/dmtu;
CNF China, Mn 44%, Gabonese origin: $5.3/dmtu;
CNF India, Mn 37%, South African origin: $4.85/dmtu;
CNF India, Mn 44%, Gabonese origin: $5.45/dmtu;
CNF India, Mn 44%, Australian origin: $5.85/dmtu

High-grade manganese ore prices increased by 12% week-on-week (w-o-w) amidst increasing silico manganese demand in the international market. Meanwhile, South African carbonate ore prices increased by around 5% w-o-w.

Reasons for increased ore prices
Most of the Asian countries are facing issues of short supply of manganese alloys, which is leading to increased demand for silico manganese from China and India. The Indian market is facing supply shortage due to increased demand from overseas as most suppliers are booked for the next two months.

Meanwhile, Malaysian major OM Holdings suspended operations due to increased Covid cases. Since India and Malaysia cater to most of the Asian silico manganese demand, the countries are now turning towards the Chinese market for silico manganese.

Chinese manganese ore inventory down
Chinese manganese ore port inventory fell by 0.15 mn t on robust domestic demand. The major drop in inventory was reported in Tianjin Port, with the current inventory at 4.42 mn t as compared to 4.53 mn t last week.
Meanwhile, port prices in China increased by $0.5/dmtu w-o-w.

Outlook
Chinese ports saw an increased number of inquiries late last week after Chinese silico manganese prices rebounded. Most of the demand was for higher grade manganese ore. The bullish sentiments in manganese alloys market may have an effect on the pricing dynamics of manganese ore. In addition, the upsurge in Indian silico manganese prices is also supporting the imported manganese ore market sentiment.

*Correction: The price difference was wrongly mentioned as $0.12/dmtu, which has been corrected to 12%.