Indian Manganese Ore Prices Steady amid Strong Domestic Manganese Alloy Market

Domestic Manganese ore prices were unchanged as the market witness good demand from participants.

Private miners in Balaghat have kept their offers unchanged as there is steady demand from buyers. Reportedly, Indian producers prefer imported Manganese Ore as it is of better quality.

In Odisha, private miners have kept Manganese Ore prices unaltered. Earlier in April Private Manganese ore miner, Orissa Manganese & Minerals Limited (OMML), a subsidiary of Adhunik Metaliks had increased Manganese ore prices for 26-34 grade by INR 500/MT and 34+ grades by INR 250/MT for 2014. In conversation with Mr Sanjay Drolia (DGM Marketing) from OMML, reported to SteelMint that the company will increase the prices for Manganese Ore within a week or two as there is strong demand in the market. Mangilall Rungta mines is currently offering two grades of Manganese Ore. Grade 26-28% Mn is being offered at INR 7,000/Mt and 28-30% Mn is being offered at INR 7,500/MT.

SteelMint assessed that Indian Manganese Alloy market is stable with resilient demand since the last few months. Currently there is high demand for Silico Manganese in the market. Silico Manganese prices typically set the direction for Manganese ore prices. Market watchers are predicting Manganese Ore market to get better soon.

Imported Manganese Ore Market

International Manganese Ore market remained sluggish during the last two – three weeks with no signs of improvement due to lack of demand from China. Most of the big traders in China are sitting on huge stocks and are compelled to sell at the lower price incurring huge loss. As China was not buying Manganese Ore exporters were trying hard to sell in India, and plenty of Manganese Ore was being offered to India at cheaper prices to push sales. Ore & Metals believed to have sold Semi-Carbonated Manganese Ore at USD 3.75/DMTU to India for June, 2014 shipments. UMK Manganese Ore prices are more or less at par with this, though BHP has not yet declared their prices for June, 2014 shipments to India.

High Grade Manganese Ore offers are also at a two year low. Many believe that the big miners can still afford to sell at lower prices as the real realization is still better for them due to the weakening South African Rand against the US Dollar. Although there is some scope for further downside in the Manganese Ore market, many believe that it might experience a sudden jump if Chinese demand improves which is a possibility due to favorable Electricity prices in China during the monsoon period. Also, demand in India for imported Ore is good. With the Rupee appreciating, high grade Ore is available at a decent price and high grade ore requires lower power consumption, generating strong buying interest among the Indian Manganese Alloy producers for Imported Ore.

Indian Manganese Alloys domestic consumption is increasing due to steady rise in the overall steel output. SteelMint assessed the Manganese Alloys market is expected to remain firm at least for the next few months.