India’s Imported Manganese Ore Market Remains Weak with Light Transactions

Demand for manganese ore continues to be sluggish on the back of poor demand for manganese alloys.

There are no changes in the offers of imported manganese ore as such, as the big miners have maintained the same prices for the July, 2015 shipments.

South African carbonated ore (36-37%) is being offered at USD 2.7/dmtu CIF India. The offer price for Australian 47% lumps is USD 3.25/dmtu and Gabon 44% is USD 3.05/dmtu CIF India.

Imported manganese ore stocks with the smelters are low and they are still adopting a cautious approach towards taking long import positions due to the looming uncertainty on manganese alloys market improving. Many furnaces in India have been shut or are producing at low percentage of capacity, and this has resulted in a sluggish manganese ore market.

There is 15-20 days waiting in Haldia, and as far as Indian market is concerned, there is a sudden shortage of imported Manganese Ore in the market because of delay in shipments, which may be temporary in nature.

Domestic Manganese Market

In the domestic market manganese ore prices slipped, as private miners assess the market less favorable.

Earlier in this month MOIL has cuts manganese ore prices by 3-12% of various grades for Q2. The prices of all ferro grades of ore have been reduced by 3-7.5%, silico grade prices have been reduced by 12.5% while the prices of manganese ore fines have been reduced by 5% from previous quarter’s prices.

Miners from Balaghat are burdened by weak buying interest and higher mining costs during the rainy season, and they have stopped production in sight of poor demand from manganese alloy producers. Market sources reported that only few producers are offering material from their existing inventory.

SteelMint assessed that the current offer in Balaghat for grade 30% is INR 4,700/MT; 34% is INR 5,800/MT ; 38% is INR 7,000/MT and 48-50% is INR 9,600/MT. Prices mentioned are inclusive of royalty and exclusive of taxes.

Mangilall Rungta Mines in Odisha is currently offering low grade Manganese ore of 26-28% at INR 5,250/MT; 28-30% at INR 5,750/MT and 30-32% at INR 6,250/MT. Prices mentioned are inclusive of royalty and exclusive of taxes.

The Indian steel market is facing continuous pressure and so is the ferro alloy market, resulting in the Indian manganese alloy producers to lose interest in procuring the raw material.

Prices incld royalty
Source: SteelMint Research
Exchange Rate: USD 1 = INR 63.65