MOIL, India’s largest manganese ore producer, has announced manganese ore prices effective from 1 July 2024. Mn grades above 44% have witnessed a marginal hike of 2% in offers m-o-m, while lumps below 44% have decreased by 8% from last month’s offer , BigMint learnt from sources. Notably, this is the miner’s first price cut in the last six months after an increase in offers by around 40% last month and 35% in April.
Factors impacting prices
Stable imported ore prices: South African manganese ore (Mn37%) prices remained relatively stable since the second week of June. Prices for South African (37%) manganese ore stood at $6.15/dmtu in week 3 of the current month as against $6.55/dmtu in the first week, down 6%. Australian (46%) origin manganese ore prices maintained stability at $9.01/t in week 3 of June as against $9/dmtu in week 1, up by 1%, while Gabonese (44%) ore was assessed at $8.45/dmtu, unchanged during the first two weeks.
Imported manganese ore prices remained relatively stable this month due to lower inquiries and purchase volumes owing to a weak export market for Indian manganese alloys.
Silico manganese prices drop to 2-month low: Indian silico manganese prices drifted down by INR 4,200/t ($50/t) in June, with prices of grade 60-14 falling by 5% m-o-m to settle at INR 85,700 /t ($1,027/t) compared to INR 89,900/t ($1,077/t) exw Raipur in May. Prices are currently hovering at a two-month low, as per data maintained with BigMint.
This price decline came due to subdued demand in the domestic market despite ongoing cost pressure amidst rising imported ore prices. Reduced demand and waning confidence were apparent in finished and semi-finished steel sectors, resulting in sluggish operations and lacklustre performance.
Lower inquiries, container shortage weigh on export prices: Silico manganese (60-14) export prices witnessed a 4% m-o-m decrease by $44/t to reach $1,077/t FOB in June compared to $1,121/t in May. Meanwhile, silico manganese (65-16) remained largely stable with a slight decline of 1% ($13/t) to $1,210/t FOB India in June as against $1,223/t in May.
Indian silico manganese exporters were grappling with logistical challenges exacerbated by redirected Red Sea traffic and container shortage. Disruptions in the Suez Canal and prolonged shipment delays have contributed to port congestion and increased domestic pricing pressures.
Billet prices down 4% m-o-m: Domestic billet prices fell to INR 42,592/t ($510/t) exw-Raipur in June, down from INR 44,537/t ($534/t) in May, a decline of INR 1,945/t ($23/t. This decline stemmed from subdued demand and operational challenges in finished and semi-finished steel markets.
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