India’s imported manganese ore prices stable w-o-w, South African lumps drift lower

• Weak export demand, logistic challenges delaying ore volumes
• Eramet maintains firm stance on ore prices
• South32 cuts prices for low-grade for September
• Weekly cargo arrivals plunge by 40% w-o-w

India’s imported manganese ore market remains steady w-o-w

In the week ending 9 August 2024, India’s imported manganese ore market remained stable despite ongoing challenges such as weak alloy exports, container shortages, and high ocean freight costs. Limited buying activity has further contributed to price stability.

Price trends:

• Australian high-grade manganese ore (46% Mn): Prices held steady at $9.7/dmtu.
• Gabonese high-grade manganese ore (44% Mn): Prices remained stable at $9.1/dmtu.
• South African lumps (Mn 37%): Prices fell to a 5-month low of $4.3/dmtu, down $0.15/dmtu, reflecting reduced demand for low-grade manganese alloys.

Factors contributing to price stability:

1. Weak export demand: A subdued market for Indian manganese alloys has led to reduced demand for imported ore.
2. Logistical challenges: Ongoing container shortages and rising ocean freight costs, particularly for shipments to the EU and other key markets, have constrained import activity.
3. Cautious buyers: Domestic buyers are cautious and prefer to maintain existing manganese ore inventories rather than commit to new purchases, as many Indian smelters have sufficient reserves from previous purchases.

These factors have created a stable price environment for imported manganese ore.

Import volume declines:

Manganese ore imports to India fell by 40% w-o-w, with shipments totaling 202,164 t between 31 July and 6 August, compared to 337,081 t in the previous week.

Outlook

The future trajectory of prices hinges on the export market’s recovery and prevailing logistical challenges. A rebound in exports could trigger higher ore demand and prices, while container shortage and not easing freight costs might impact on import activity in the near-term.

Eramet Comilog has maintained its September price for 44.5% Gabonese lump ore at $9.00/dmtu CIF China. This decision reflects subdued demand and lower prices in the Chinese market.

South32’s significant 32% price reduction for 37% South African manganese ore lump to $4.60/dmtu CIF China underscores the impact of weak buyer demand and declining Chinese spot market prices.