- Imported ore prices unaffected by lagging demand
- Arrivals of import freight rise by 59% over the previous week
Imported manganese ore prices have remained unchanged over the last three 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 has exhibited sluggishness over the past three weeks, marked by reduced inquiries and purchase volumes. Market participants are displaying a lack of buying interest, leading to difficulties in closing deals and a subsequent decline in demand for manganese alloys.
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.
Factors keeping imported manganese ore stable
Stalemate persists amidst cautious wait-and-see approach: Cautious buyers and weak downstream demand are creating a holding pattern in the manganese ore market. Spot trading activity is light, and inquiries have not translated into significant transactions. This highlights an ongoing mismatch between supply and demand. Market participants are likely waiting for price adjustments or a clearer demand picture before engaging more actively.
Imported cargo arrivals increase by 59% w-o-w: Manganese ore cargo arrivals to India increased by 59% (Mn37%, Mn44%, and Mn46%), with weekly shipments reaching 162,004 t between 27 March and 2 April 2024, up from 102,024 t in the previous week. The weekly import volume of manganese ore has recovered from the previous week’s low volume.
Domestic supplies, pricing, and steel mill demand are key uncertainties for the manganese ore market. Rising domestic factors could undercut imported ore, while increased steel mill buying could revitalise the market. Notably, silico manganese prices in India increased by around INR 2,000/t ($24/t) w-o-w to INR 67,400-68,300/t ($809-820/t) exw across major markets of Raipur, Durgapur, and Vizag. The price uptick was driven by MOIL’s elevated ore offers, rising by 6% for grades above Mn44% and 3% for below Mn44% grade.
However, cost concerns remain for South African semi-carbonate manganese ore shipments.