- Imported ore prices remain unfazed by weak demand
- A notable recovery in weekly import cargo arrivals compared to last week
Imported manganese ore prices have remained unchanged over the last two weeks, indicating mixed market dynamics.
- Gabonese high-grade manganese ore (44%) held steady at $4.45/dmtu, demonstrating continued stability in this segment.
- Australian high-grade manganese ore (46%) stayed firm at $4.75/dmtu, indicating potential softening in demand.
- South African lumps Mn 37% graded witnessed the same level this week, at $4.15/dmtu, suggesting a possibility of limited upward momentum amid production cuts.
The imported manganese ore market was sluggish last week, due to reduced inquiries and purchase volumes. Closing deals has become challenging due to a confluence, as market participants showed a lack of buying interest, resulting in low demand for manganese alloys. This could be linked to a number of aspects, including cautious buyer decisions and a downturn in the steel industry.
Additionally, the emergence of competitively priced domestic suppliers has put downward pressure on the overall market. These easily accessible, lower-cost alternatives were making it difficult for imported manganese ore to gain popularity.
Factor impacting imported manganese ore prices
Tepid downstream demand: Manganese alloys producers were experiencing sluggish demand from export market and weak demand from downstream steel industries. This lack of robust buying interest from key consumers has been putting a damper on the manganese ore prices.
Imported cargo arrivals increase by 34% w-o-w: Manganese ore cargo arrivals to India increased by 34% (Mn37%, Mn44%, and Mn46%), with weekly shipments reaching 102,024 t between 20 March and 26 March 2024, up from 76,200 t in the previous week. The weekly import volume of manganese ore has recovered from the previous week’s low volume.
The future trajectory of the manganese ore market will depend on changes in the availability domestic supplies as well as pricing of domestic manganese ore, which will directly impact the competitiveness of imported ore offers. Furthermore, an uptick in demand from steel mills or other user industries could revitalise the market and potentially lead to price adjustments.