India: MOIL Reduces Manganese Ore Prices for Dec’17

Manganese Ore India (MOIL), the country’s largest and government-owned manganese ore producer with an annual production of 11.5 lakh MT, has reduced prices of all grades by 5% on the existing prices since Oct’17.

Prices have been slashed on the backdrop of falling manganese ore prices in the seaborne market. It is to be noted that manganese ore prices in the global market have witnessed a downward correction due to low demand from China.

MOIL has reduced prices of various grades of manganese ore for the remainder of third quarter (Dec’17)

Previously, MOIL had increased prices of all grades by 7.5% in Oct’17, and decided against revision of its prices in Nov’17.

Imported Manganese Ore Market Outlook

International Manganese Ore prices have been falling from the last months as demand from China has fallen sharply. The Manganese Ore market is still finding it difficult to sustain at current price levels, although most market participants believe that the manganese ore prices are not likely to fall much further. Australian high grade Manganese Ore is the least affected during this down trend. Australian Manganese Ore grade 46% is being offered at around USD 6.5/ DMTU CIF India for Dec’17 shipment. The same was being offered at USD 6.8/DMTU at the beginning of Oct’17. Demand from India for imported ore remains stable and the current prices are at acceptable levels for the Indian smelters.

South African Semi-Carbonated Manganese Ore prices have also been moving down consistently and is being offered at USD 5.3/ DMTU CIF Indian Ports, being most in demand especially by Silico Manganese producers. International Manganese Ore prices are expected to be stable for the near future as downside seems limited and upside depends upon the Chinese demand – which is likely to remain low all through the winter season.