Indian manganese ore imports increased by a sizeable 57% year-on-year (y-o-y) to 4.31 million tonnes (mn t) in financial year 2020-21 (FY ’21). In fact, the second half (H2) of FY ’21 saw a hefty 63% increase in imports of the material at 2.67 mn t against 1.64 mn t seen in the first half.
Meanwhile, South Africa remained the largest exporter of manganese ore to India, with 51% or 2.18 mn t share in the total imports pie (0.79 mn t in H1 and 1.39 mn t in H2).
The major importers are as follows:
Key factors for the rise in imports:
- South Africa remains largest exporter:
In FY ’21, South Africa remained the largest exporter of manganese ore to India, followed by Gabon and Australia. India imported 2.18 mn t from South Africa, up by 29% y-o-y.
Meanwhile, in Oct ’20 and Feb ’21, the imports from South Africa were the highest in the last fiscal.
- Higher silico manganese prices:
Indian silico manganese prices started increasing since Nov ’20, after most producers witnessed a surge in demand, especially from the European countries. European buyers were willing to pay higher prices for the shipments, which, in turn, drove up the prices of silico manganese in the domestic market. However, Indian silico manganese prices started crossing historical highs in Jan ’21, which also offered good leverage to the Indian smelters to buy more manganese ore and stock up on inventories.
- Higher demand for silico manganese:
The last quarter of FY ’21 saw an exceptional increase in the demand for silico manganese. The European countries starting booking for the whole quarter owing to the uncertainties regarding Brexit. Meanwhile, the production of steel improved towards the year-end, which helped to boost demand further. As did the Ukrainian plants’ closures and delivery issues. Thus, most of the producers were operating at full capacity and remained sold-out two months in advance. This encouraged the producers to procure more manganese ore for increasing their production levels.
- Indian imports from Gabon increased 4-fold in Mar ’21:
Indian imports from Gabon increased by a whopping 360% m-o-m in Mar ’21, amidst increased demand for silico manganese. Around 43% of the total imported ores from Gabon were of grades 44-46%. Though the prices remained high for manganese ore, the silico manganese producers accepted these levels, since they were reaping higher profit margins.
- Container shortage leads to bookings of higher tonnages:
There was a severe container shortage in the international market, which impacted shipments. This goaded the silico manganese smelters and the manganese ore traders to book higher tonnages to mitigate the risk of late deliveries of the materials.
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