Imported Manganese Ore Offers to India Increase for May Delivery

Imported Manganese Ore offer prices have increased for May delivery, tracking demand from China.

Imported Manganese Ore prices are firm in the international market due to improved demand from China, enabling miners to double their offer prices in a month’s time. South African Manganese Ore (44% Mn) is being offered at USD 4.1/DMTU CIF India for June shipments, although for May shipment deals were concluded at much lower prices.

Price of Manganese Alloys is still holding firm in India, despite limited buying interest. Stock levels of Manganese Ore is very low and some furnaces are even operating at hand-to-mouth situation. There are fewer offers for imported Manganese Ore in the market mainly due to bad logistics in South Africa and a temporary shut-down of operations at Port Elizabeth for maintenance work. Australian Manganese Ore (46% Mn) is being offered at USD 4.4/DMTU CIF India for May shipments, although the same grade material for May shipment to China is being offered at USD 4.1/DMTU CIF China. Gabon has also increased its price, and is offering 44% grade at USD 4.2/DMTU CIF India for May shipment.

International prices of Manganese Ore are mainly driven by Chinese demand and it is expected to remain firm at least for the current quarter. However, prices for imported manganese ore at China’s major ports have started falling again with growing port stocks.

Private miners from Balaghat have raised offers, as the demand is steady, and in line with increased offer prices by MOIL for the next quarter.

Manganese Ore offers from private miners in Balaghat witness an uptick due to limited production and steady demand. Few mines of manganese ore are non-operational in Balaghat; with many producers stalling production.

SteelMint assessed that the current offer in Balaghat for grade 30% is INR 5,500/MT; 40-42% is INR 9,500/MT; 44-46% is INR 10,500/MT and 46-48% is INR 11,500/MT. Prices mentioned are exclusive of taxes.

Mangilall Rungta mines in Odisha is currently offering 26-28% at INR 7,250/MT; 28-30% at INR 7,750/MT; 30-32% at INR 8,250/MT and 32-34% at INR 8,750/MT.

Earlier in this month, State-owned and India’s largest manganese ore producer, Manganese Ore India Ltd (MOIL) increased ferro grade prices by around 50% (except for Mn 48% grade, for which the offer quantity is also the maximum), silico grade prices have been increased by 15-20%, while the prices of manganese ore fines have been increased by 10%, and Chemical grade has increased by 35% from previous quarter’s prices.

SteelMint learnt from market sources that Manganese Alloys prices in the Indian domestic market should not increase further.

Exchange Rate: USD 1 = 66.42
Source: SteelMint Research