Indian Manganese Alloy Producers choose Imported over Domestic Ore

Indian Manganese Alloy producers prefer to use imported Manganese ore with international suppliers trying to garner higher sales in India as demand from China is very low.

International Manganese ore prices have remained more or less stable during the last few weeks as demand from China remains low. Lower electricity prices during monsoon season in China has failed to generate fresh demand for Manganese ore, as buyers have stayed away from the market and are not taking any long positions as of now. Australian high grade Manganese ore is the worst affected during this down trend. Demand from India for imported ore remains stable and the current prices are at acceptable levels for the Indian smelters. Domestic market seems unaffected by the Odisha mining ban by the Supreme Court as there is a sufficient flow of imported Manganese ore which keeps the demand for Indian Manganese ore stable.

South African Semi-carbonated Manganese ore is being offered at USD 3.70-3.80/ DMTU CIF Indian Ports, being most in demand especially by Silico Manganese producers. International Manganese ore prices are expected to be stable for the near future as downside seems limited and upside depends upon the Chinese demand, which is low at the moment.

Better Manganese Alloy prices have also failed to uplift Manganese ore buying sentiment, as the rainy season in India approaches. Market players are adopting a cautious approach towards Manganese ore buying activity and it may witness a sudden surge if Chinese demand crops up, which SteelMint assessed is quite unlikely anytime soon.