India: Imported Manganese Ore Offers Firm Despite Cautious Buying

An uncertainty prevails throughout the market as buyers reflect cautiousness on lack of clear direction as Silico Manganese prices in China is on a downtrend.

Imported Manganese Ore prices have witnessed a drastic rise but an unacceptability rose among the buyers as prices of manganese alloys began to slide.

China, having the prime influence on global Manganese ore prices, has resisted the elevated offers on the backdrop of Silico Manganese’s low realization rate due to the production cut of steel in the country.

However, contradicting the same, some of the participants are of the view that Manganese ore prices may move northwards as they expect the ferro alloy production to restart in China.

“It has been quite difficult to maintain margins as the cost of production is high but realization rate of manganese alloys is dropping,” said a producer source expressing his concern.

Indian manganese alloy producers have been observed to cut their offers during the financial year ending period as most of them are facing a cash-crunch situation while many buyers are also unwilling to accept higher offers.

SteelMint assessed offers for 37-38% Carbonate Ore from South Africa at around USD 8.5/dmtu CIF India, while prices for 44% Manganese Ore from Gabon and 46% Ore from Australia at USD 9/dmtu CIF India and USD 9.3/dmtu CIF India May deliveries.

However, a source revealed that there are not many offers from South Africa currently but imports from Gabon and Australia are constant. The winter season in South Africa can be pointed out as a reason why production in South Africa could be down, as power cost hikes drastically.

On the future outlook, market participants depicted mixed views on the future pricing of imported Manganese Ore. Some predicted that Manganese Ore prices are likely to remain firm, however, few said sea-borne Manganese Ore prices moving down marginally can’t be ruled out entirely as prices of manganese alloys have been falling and buyers might curtail production, hence, reducing their demand for Manganese Ore.