India: Manganese Ore Prices Down

Indian Manganese ore market retreated as supply overhang dampened sentiment and prices.

In the domestic market, Manganese ore prices slipped extensively, as private miners have assessed that the market is less favorable. Earlier in this month, MOIL reduced Ferro Manganese grade ore prices by 10% and Silico Manganese grade ore prices remain unchanged.

Current prices of Manganese ore in Balaghat for 28-30% Mn is at INR 6,000/MT, 34-36% Mn is at INR 7,800/MT and 40-42% Mn is at INR 9,500/MT. Prices mentioned above are Ex-Mines, including royalty and excluding taxes. Presently, Manganese ore from Odisha is not being offered. Domestic market seems unaffected after Odisha mining ban by the Supreme Court, as there is sufficient availability of Manganese ore in Balaghat region.

Private owners in Balaghat are currently facing pressure in the market, as most end-users prefer imported ore. South African origin Manganese ore (Mn 30-32%, Fe 20-22%) is being offered at USD 4.2/DMTU CIF India – the demand for this ore is better at the moment with high Fe ore not being supplied from Odisha. South African carbonated ore 36-37% is being offered at around USD 3.7/DMTU CIF India. Chinese demand also plays an important role which is also weak at the moment, as they have amply material available at port. Indian imports have also become expensive owing to weaker currency, which also contributes to the high cost of Manganese ore and in turn, the higher Manganese alloy production cost. BHP based in Australia has reduced its Manganese ore prices to India for July, 2014 shipments, and  45.5% lumps is at USD 4.55/DMTU CIF India.

[su_quote]“The domestic Manganese ore market has crashed completely. Ample supply and no demand have driven prices lower,” remarked a miner from Balaghat.[/su_quote]

On the future outlook, market sources said that prices were probably low enough to induce buying, but buyers were still reticent.

Exchange Rate: USD 1= INR 60.25