Imported Manganese Ore Offers to India Slightly Lower

India’s imported manganese ore market remained weak with sluggish demand and light transactions, tracking a slack manganese alloy market.

Demand for manganese ore 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 carbonated ore (36-37%) is being offered at USD 2.6/dmtu CIF India. Already under pressure, prices of imported manganese ore are likely to come down further if the lack of demand persists. Australia has also reduced its manganese ore prices to India. The offer price for 44% lumps is USD 3/dmtu and high grade 47% particle ore is USD 3.25 /dmtu CIF India. The stock levels of manganese ore with Ferro alloy smelters 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. Chinese demand for imported manganese ore has also been very low and this has resulted in big miners reducing their prices further to attract Indian buyers. As a result, manganese alloy production cost has come down bringing some relief to its producers.

Manganese ore prices were kept unchanged by sellers as demand from end-users continued to remain weak.

“Domestic offers for manganese ore from Balaghat remain unchanged, although the demand is low in line with the lackluster market for manganese alloys. Very few deals for manganese ore are being concluded”, reported a miner source.

Sellers said they were offering at the same price levels since there was no rush from buyers to purchase material. “Low prices aren’t attracting buyers and there are fewer takers in the market,” said a miner.

Buyers said Manganese ore is available on a discounted price and they have curtailed manganese alloy production looking at poor market scenario.

SteelMint assessed the current offer in Balaghat for 30-32% grade is INR 5,750/MT; 34-36% is INR 6,750/MT, 40-42%- is INR 8,500/MT and 42-44% is INR 9,100/MT. Prices mentioned are inclusive of royalty and excluding taxes.

Mangilall Rungta Mines is Odisha currently offering manganese ore of 26-28% grade at INR 5,000; 28-30% at INR 5,500/MT; 30-32% at INR 6,000/MT; 32-34% at INR 6,500/MT and 34-36% at INR 7,250/ MT.

Manganese ore prices will continue to remain under pressure at least for the time being.

Prices incld royalty
Source: SteelMint Research
Exchange Rate: USD 1 = INR 63.9