- Smelters face lower ore allocations from exporters
- Volatile finished steel prices dampen alloy demand
India’s imported manganese ore prices have remained stable for the past two weeks amid tight supply, despite slight weakness in the manganese alloys market. Fluctuating steel prices have weighed on alloy sentiment, leading to reduced demand for manganese alloys. Consequently, smelters are adopting a cautious approach to ore procurement. Meanwhile, ore availability at exporting ports was limited, with sluggish logistics operations and a steep decline in importers’ allocations.
- Australian high-grade ore (46% Mn) prices were firm w-o-w at $5/dmtu CNF Haldia/Vizag on 29 November.
- Gabonese high-grade ore (44% Mn) also held steady w-o-w at $4.66/dmtu CNF Haldia/Vizag.
- South African lumps (37% Mn) were stable at $4.25/dmtu CNF Haldia/Vizag.
Market overview
Port-side supply crunch keeps imported ore prices firm: Limited availability of manganese ore at key exporting ports has emerged as a major factor supporting price stability in the import market. Market participants highlight that lower-than-usual stock levels and slower loading schedules have restricted supply flows to Indian buyers. The constrained availability, combined with cautious procurement by smelters, has prevented any significant downward movement in imported ore prices despite subdued alloy demand.
A key smelter informed BigMint, “We have been allocated much lower volumes than usual. What used to be full-volume allocations has now been slashed by nearly half.”
Traders indicated that fresh cargoes were moved slowly, and certain suppliers prioritised long-term contracts, leaving fewer spot parcels available in the market. Until port inventories improve, this supply tightness is expected to keep imported manganese ore prices steady in the near term.
Manganese alloys prices slide amid weak steel demand: Indian manganese alloys prices declined w-o-w, with silico manganese (60-14) slipping by around INR 500/t ($6/t) to INR 69,700-70,600/t ($780-790/t) across Durgapur, Raipur, and Vizag. Buying interest from steel mills remained subdued, as volatility in finished steel prices prompted cautious procurement and dampened overall trade volumes across major producing hubs.
In the raw material segment, Sandur Manganese and Iron Ore (SMIORE) auctioned 27,216 t of manganese ore (Mn 26-34%) on 28 November, recording higher bids m-o-m. Strong participation resulted in nearly 80% of the material being booked.
Ferro manganese prices also weakened. Prices of the HC 70% grade dropped by INR 100/t ($1/t) w-o-w to INR 72,000/t ($806/t) ex-Durgapur, while Raipur prices declined by INR 400/t ($5/t) to INR 72,400/t ($806/t). Market participants pointed to sluggish activity and continued cautious buying, which weighed on overall sentiment.
Meanwhile, HC 75% ferro manganese prices fell by $7/t w-o-w to $893/t FOB Vizag/Haldia, reflecting soft demand and muted spot inquiries.
Imported cargo arrivals fall w-o-w: Weekly manganese ore cargo arrivals (Mn37%, Mn44%, and Mn46%) to India decreased by 15% to 136,004 t over 12-18 November against 160,265 t in the previous week.
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