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 Chinese buyers. However, there is a major shortage of imported manganese ore in the Indian market amid limited offers.
The price of seaborne Manganese Ore to India continues to rise as demand from China remains robust. It is highly possible for the Manganese Ore prices to increase further in the coming month. Gabon Manganese Ore grade 44% is now being offered at around USD 8.6 /DMTU CIF India. However, price for grade 37-38% South-African Carbonated Ore has gone up substantially, and is being offered at USD 8.1 /DMTU CIF India. Australia has also increased its offers for high grade Manganese Ore to India, and Australian Manganese Ore grade 46% is being offered at around USD 9.2 /DMTU CIF India. These prices are for January deliveries.
SteelMint assessed that as long as China continues to replenish its stock of Manganese Ore, the global miners will be able to keep increasing offer prices. For India, Manganese Ore is a sellers’ market, particularly when the Chinese demand is strong – Indian buyers just have to pay a premium to get the cargo.
SteelMint assessed that Indian Manganese Alloy producers would be unable to continue to absorb high Manganese Ore prices unless similar increases were seen in the manganese alloy and steel prices. Notably, Indian Manganese Alloy prices have started to soften in the domestic market on lacklustre demand after the demonetization of higher value currencies.
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