Imported Manganese Ore Market Quiet; Weak INR to Discourage Imports

India’s imported Manganese Ore market remained weak with sluggish demand and light transactions.

Demand for Manganese Ore continues to be sluggish on the back of poor demand for Manganese Alloys. Manganese Ore stocks with the smelters are low and they are still adopting a cautious approach towards taking long import positions due to the looming uncertainty in the Manganese Alloys market which still prevails. Australian Manganese Ore Lumpy grade 46% is being offered at around USD 2.1 /DMTU CIF India. Price for 36-37% South-African Carbonated Ore has come down, and is being offered by BHP at USD 1.7/DMTU CIF India for February shipments. Whereas, imported manganese ore offers to China have increased from previous month, and offers to India are lower than to China currently. Eramet, Gabon has also reduced its price, and is offering 44% grade at USD 1.9/DMTU CIF India. Most market participants expect that the total output of Manganese Alloys in the Indian market will keep at current level and the demand for Manganese Ore may still stay at a low level.

Domestic Manganese Ore Still Deadlocked

Miners from Balaghat are burdened by persistent weak buying interest and higher mining costs, and they have stopped production in sight of poor demand and low prices in the market.

In Odisha private miners are offering few grades of manganese ore. Currently Mn 28-30 is being offered at INR 3,750/MT and Mn 32-34 is being offered at INR 4,750/MT.

Earlier in January Manganese Ore India (MOIL), has cut prices of various grades by 8-12% for the quarter Jan-March ’16. MOIL has been cutting prices on the back-drop of falling Manganese alloys prices in Indian market and tumbling imported manganese ore offers to India .

Source: SteelMint Research
Exchange Rate: USD 1= INR 68