Imported Manganese Ore prices remained weak in line with a low realization of Chinese Manganese Alloys and offer by global suppliers have come under pressure from tender prices on manganese alloys from steel mills, all leading alloy producers to expect a continuous price drop on ores.
In the domestic market, MOIL, the largest ore producer in India, has also reduced its prices for various grades by 15% on the backdrop of weakening imported ore prices.
However, the alloy prices in India has been improving on strong steel fundamentals coupled with rising export inquiries. Hence, few market participants are of the view that rising alloy prices might support ore prices.
SteelMint assessed Manganese Ore 37-38% South African carbonated ore at USD 5.9/dmtu, 44% grade ore from Gabon at USD 6.7/dmtu and 46% grade Australian ore at USD 6.9/dmtu CIF India.
For seaborne Manganese Ore, no turning point can be seen for better transaction rates driven by an inclination to buy when prices are rising instead of dropping. However, with strict environment checks to curb pollution in China and low level of Manganese Alloy inventory with steel mills could drive Alloy producers to hold back offers and refuse to sell at low prices – stemming the free-fall in Manganese Ore prices.
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