- Strike leads to increase in high-grade manganese ore prices
- Manganese alloys prices dip, domestic smelters resume operations
Imported manganese ore prices have seen a slight increase this week. This uptick is primarily attributed to declining port inventories due to a labour strike at Gabon.
- Australian high-grade ore: Australian high-grade (46% Mn) ore witnessed an increase of $0.01/dmtu to $5.29/dmtu due to constraints in supply.
- Gabonese high-grade ore: Prices of Gabonese high-grade (44% Mn) ore edged up by $0.01/dmtu to $4.94/dmtu, reflecting rising production and handling costs, along with ongoing rail maintenance impacting supply.
- South African lumps: South African lumps (37% Mn) saw a slight decrease of $0.02/dmtu to reach $4.57/dmtu
Market overview
Strike at Gabon mine raises concerns over supply: Chinese and Indian buyers are growing increasingly concerned over the supply of manganese ore following a strike by union workers at Moanda mine in Gabon, the largest manganese mine in the world. The strike has halted mine production and slowed exports, causing alarm among buyers who are already facing challenges in securing adequate supplies in a tight high-grade ore market. Union leaders have announced that workers will continue the strike “indefinitely” until their salary demands are met. This disruption has led to a slight increase in prices of high-grade manganese ore.
In CY’24, China and India collectively imported around 6.5 million tonnes (mnt) of manganese ore, but this figure may decline in the near term due to the ongoing strike, which is expected to continue for an indefinite period, placing further strain on supply levels.
Manganese alloys prices ease as domestic supplies increase: Manganese alloys prices have eased slightly due to increasing domestic supplies as a few smelters across the region have resumed production. Silico manganese prices decreased w-o-w by INR 600/t ($7/t), settling at INR 71,600-73,300/t ($822-838/t) in key regions like Durgapur, Raipur, and Vizag. This decline is attributed to buyer resistance to higher quotes, resulting in cautious market behaviour and minimal price fluctuations.
Similarly, ferro manganese (HC 70%) prices also inched down w-o-w, remaining at INR 75,700/t ($869/t) exw in Durgapur. Prices at Raipur fell by INR 400/t ($5/t), bringing them to INR 75,600/t ($867/t). These slight price reductions reflect the ongoing reluctance of buyers to accept high offers, contributing to a more stable yet cautious market environment.
Weekly manganese ore cargo arrivals fall: Manganese ore imports to India decreased by 19% w-o-w, with shipments totalling 111,705 t between 19 and 25 February.
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