India: Manganese Ore Prices Under Pressure

Indian Manganese Alloy producers are adopting a cautious approach towards importing Manganese Ore and reluctantly taking even small positions.

Indian demand for Manganese Ore imports continues to be sluggish on the back of poor demand for Manganese Alloys. The Manganese Ore market is still finding it difficult to sustain at current price levels. South African Semi Carbonate Manganese Ore prices (Mn 37%) from USD 2.85/DMTU to USD 2.5/DMTU CIF India for August deliveries. Also, there is a reduction in the South African high grade Manganese Ore (44% Mn) prices which is being offered at USD 2.7/DMTU CIF India. Australian Manganese Ore grade 46% is being offered at around USD 3 /DMTU CIF India for August delivery. But, buyers are still reluctant to book at these prices. As a result, miners are under pressure and are offering aggressively to the Indian market. Lot of Indian Manganese Alloy plants are operating at very low capacity and some of them are completely shut down because of the weak demand and high cost of production. Chinese demand for imported Manganese Ore has also come down sharply, as they now have sufficient stock at their ports. Imported Manganese Ore prices is likely to be under pressure at least for the time being.

The stock levels of Manganese Ore with Manganese Alloy smelters in India is still low and nobody is willing to take long positions on the Ore unless there is clarity in the direction of Manganese Alloys market. All the shipments which are scheduled to arrive at Indian ports were booked at previous higher prices and the Manganese Alloys production cost will still be under pressure due to this.

Low Demand Remains a Continuous Constrain in the Domestic Manganese Ore Market

Demand for domestic Manganese Ore also continues to be very low in the market on weak buying interest from manganese alloy producers. Prices of manganese alloy have been week in the past few months and so procurement for manganese ore has also been very limited.

Many Indian private miners in Balaghat region continue to not be involved in mining of manganese ore due to increased cost of production of manganese ore coupled with a lack of demand and ore prices being too low to conceive any profit.

Mangilall Rungta mines in Odisha looking at the low demand has decreased their manganese ore offer prices. Currently, offers for Manganese ore grade 26-28% is at INR 5,000; 28-30% at INR 5,500/MT; 30-32% at INR 6,000/MT; and 32-34% at INR 6,500/MT. Rungta mines is also offering higher grades this month with grade 40-42% being offered at INR 9,500/MT and 42-44% being offered at INR 10,500/MT. Prices mentioned are inclusive of Royalty and excluding Taxes.

Exchange Rate: USD 1 = 67..1
Source: SteelMint Research