- Manganese alloys producers’ margins squeezed on rising ore, weak alloy
- Weekly cargo arrivals increase
Imported manganese ore prices in India ticked higher this week, supported by restocking ore demand and limited availability at ports side. However, manganese alloy prices continued to slide amid sluggish consumption in both domestic and export markets.
- Australian high-grade ore: Prices of Australian high-grade (46% Mn) ore rose slightly by $0.02/dry metric tonne unit (dmtu) to around $4.70/dmtu w-o-w.
- Gabonese high-grade ore: Prices of Gabonese high-grade (44% Mn) inched up by $0.01/dmtu w-o-w to $4.39/dmtu.
- South African lumps: Prices of South African lumps (37% Mn) rose $0.01/dmtu w-o-w to $4.15/dmtu.
Manganese alloy markets slide under weak steel demand: The alloy market painted a contrasting picture this week. Despite firmer imported manganese ore prices, alloy producers were unable to pass on higher input costs to buyers, as both domestic and export demand from steel mills remained subdued.
Silico manganese (60-14) prices fell by INR 450/t ($5/t) to INR 69,200-69,600/t ($786-790/t) across key hubs including Durgapur, Raipur, and Vizag. Market participants noted that rising inventories and weak offtake weighed on sentiment, although elevated input costs prevented a steeper decline. Export offers for the 65-16 grade also softened, slipping by $8/t to $923/t FOB Vizag/Haldia.
The ferro manganese market followed a similar trend. HC 70% grade dipped by INR 200/t ($2/t) to INR 70,300/t ($798/t) exw Durgapur, while Raipur prices eased by INR 100/t ($1/t) to INR 70,600/t ($802/t). Increased supply from select regional producers in Durgapur further pressured the market. Export prices of HC 75% grade declined by $7/t to $882/t FOB Vizag/Haldia.
One of the key smelter informed BigMint that operating margins have turned increasingly thin as production costs continue to rise. Seasonal transportation disruptions due to monsoon conditions have added to the cost burden, while the recent uptick in imported manganese ore prices is expected to further limit profitability in the near term.
Looking ahead, market participants believe that while ore prices may remain supported in the short term due to limited portside availability, alloy producers are likely to face continued pressure. The disconnect between rising ore costs and falling alloy realizations is expected to squeeze producer margins, keeping market sentiment cautious.
Imported cargo arrivals rise w-o-w: Weekly manganese ore cargo arrivals to India increased exponentially by 215% (Mn37%, Mn44%, and Mn46%) to 221,083 t over 20-26 August 2025 against 70,210t in the previous week.
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