India: High-grade imported manganese ore prices inch up amid limited supply

• Limited high-grade ore, logistical woes hit import prices of above 44% lumps
• Imported ore prices climb as Eramet Comilog raises offers for August

Prices of imported manganese ore have been range-bound from the past three weeks.

• Australian high-grade manganese ore (46%) increased by 0.55dmtu w-o-w to $9.6/dmtu.
• Gabonese high-grade manganese ore (44%) prices stood at $9.15/dmtu, increased by 0.70/dmtu w-o-w.
• South African lumps (Mn 37%) reached a 2-month low of $5.55/dmtu, down $0.25/dmtu, reflecting limited demand in low-grade manganese alloys.

Factors impacting prices of ore

Global high-grade manganese ore shortage fuels price surge: The global market for high-grade manganese ore has experienced a supply crunch. This scarcity, coupled with rising demand from China, a key consumer, have triggered a significant price increase for high-grade ore. The ramifications of this trend are being felt in the Indian market as well.

Additionally, container shortages and rising ocean freight added further pressure. Expect volatile pricing and import challenges, potentially affecting downstream products like silico manganese.

Eramet Comilog hikes manganese ore prices for China: In a move reflecting tightening global manganese ore supplies, Eramet Comilog, a leading Gabonese exporter, has increased its August shipment prices for deliveries to China. The miner has now offered Gabonese lump ore with 44.5% manganese content at $9.00/dmtu CIF China, a $0.70/dmtu increase from last month’s offer.

Weak alloy demand squeezes low-grade manganese ore prices: Manganese ore prices were stuck in a rut due to slumping demand for manganese alloys in both export and domestic markets. This cautious buyer behaviour reflects uncertainty about the future market direction.

Manganese ore cargo arrival nearly stable w-o-w: Manganese ore cargo arrivals to India remained stable w-o-w, with weekly shipments reaching 90,040 t between 26 June-2 July, nearly stable from 88,785 t in the previous week. Limited high-grade ore from Gabon, due to a global container shortage, restricted India’s weekly manganese ore imports to similar levels like last week.

Close monitoring of global supply dynamics, Chinese demand patterns for imported ore, and logistical developments are crucial to navigate the evolving market landscape and mitigate potential disruptions in India’s manganese sector.