Manganese ore offer prices have increased significantly, tracking strong Chinese demand.
Manganese ore prices are firm in the international market and have found acceptance with the Indian buyers due to improved demand of silico manganese in the domestic market, which enables manganese alloy producers to pay a better price for the Ore. However, there is a major shortage of imported manganese ore in the Indian market and traders that have material at ports, are asking for a high premium on the prices.
Price of manganese alloy has shot up in India in the last couple of weeks. Although, there is a some respite for stakeholders as volatility in the currency market has minimized, concerns over falling supplies continued. The big international miners have diverted most of their material to China on the back of prevailing strong Chinese demand. The South African carbonate ore is characterized as a cost effective manganese ore and enjoys certain advantages over high grade manganese ore. There is talk in the market that South African carbonate ore will be offered at around USD 3.00/dmtu CIF India for April-May shipments.
” The Chinese are scrambling to buy and there are very limited stocks around in India. We heard South Africa’s UMK has no more April stocks,” said an Indian manganese alloy producer source. He further added, “We also heard there’s not much Australian April stocks left, and Gabon is not available either, so consumers have no choice, they have to pay almost double of what we paid for last month if they want to buy now.”
Rising spot manganese ore prices to China and falling stock levels at the port, have supported the overall manganese ore market, sources said. Also, reduced supply of South African ores due to mine cutbacks in recent months have also contributed to the concerns and added support to prices.
SteelMint assessed higher prices are expected for April-May shipments, but no offers have been heard to India for April. This could be because as China is willing to pay high, so not many will offer to India now.
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