Spot prices of imported manganese ore have been on a declining trend and Indian manganese alloy producers are not willing to commit for July delivery shipments, in line with tumbling prices of manganese alloys in India due to a lack of support from the steel sector. For example, silico manganese which was being traded at around INR 57,000 in the beginning of FY17 is now being offered at around INR 43,000/MT. Given the lack of appetite for the alloy, ore off take has also substantially reduced as the Alloy producers are not looking to restock, either to replenish stocks to meet contract obligations with steel mills or to purchase ore in order to restart operations, given the more depressed sentiment.
Australian manganese ore lumpy grade 46% price is down and is being offered at around USD 3.5/dmtu CIF India. South-African 36-37% carbonated ore is being offered at around USD 2.85-3.15/dmtu. Gabon has also reduced its price, and is offering 44% grade manganese ore at USD 3.2/dmtu. Indian buyers are reporting of offers at different prices and there is litlle clarity on the exact offers. Spot offers are under pressure as there is very little demand and prices for Manganese Ore is expected to come down further.
Domestic Manganese Ore Prices Steady in Quiet Market
Domestic manganese ore market remains bearish as buyers were absent in the face of weaker manganese alloy market.
Although the market is sluggish manganese producers are unwilling to drop their offers. “Buying interest has completely disappeared, but this probably has a lot to do with the poor manganese alloy market”, stated an Odisha based miner.
Mangilall Rungta mines in Odisha current offers for grade 26-28% is at INR 5,750; 28-30% is at INR 6,250/MT; 30-32% is at INR 6,750 and 32-34% is at INR 7,250 from INR 8,750/MT.
Private owners in Balaghat are currently facing pressure in the market as most end users prefer imported ore. The prices of imported manganese ore are less in comparison to domestic ore; hence Indian manganese alloys producers prefer high grade imported ore over domestic ore.
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.
| Manganese Ore Price Comparison | |||
| Particular | Grade | Prices in INR/MT | Prices in USD/DMTU |
| Balaghat | 37% | 5,500 | 2.2 |
| 44-46% | 10,500 | 3.4 | |
| Odisha | 28-30% | 6,250 | 3.1 |
| 32-34% | 7,250 | 3.2 | |
| MOIL | 37.5% | 6,644 | 2.6 |
| 44% | 8,667 | 2.9 | |
| South Africa Carbonated Ore | 37-38% | 7,212-7,972 | 2.85-3.15 |
| Gabon | 44% | 9,502 | 3.2 |
| Australia | 46% | 10,866 | 3.5 |
Exchange Rate: USD 1 = 67..4
Source: SteelMint Research
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