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 big international miners have diverted most of their material to China on the back of prevailing strong Chinese demand. The South African carbonate ore is characterized as a cost effective manganese ore and enjoys certain advantages over high grade manganese ore. There is no offers currently for South African carbonate ore to India. In China the last deal for the same grade was concluded at around USD 7.00/dmtu CIF China for December shipments.
Sharing his views, a procurment personnel of a reputed Ferro Alloy Company told SteelMint, “The Chinese are scrambling to buy and there are very limited stocks around in India. We also heard there’s not much Australian December stocks left, and Gabon is not available either, so consumers have no choice. Anyway, we would have to pay almost double of what we paid for last month if we wanted to buy.” Last heard Gabon Manganese Ore grade 44% was concluded at around USD 7.3 /DMTU CIF India for December delivery. Australia has also increased its offers for high grade Manganese Ore to India substantially, and Australian Manganese Ore grade 46% is being offered at around USD 8.3 /DMTU CIF India for December shipment.
There is a major shortage of Manganese Ore supplies to India and most producers will have to procure material from MOIL. As China is willing to pay high, so not many will offer to India now.
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