Manganese Ore Prices Stable, Demand Remains Weak

Manganese ore prices continue to remain stable with sellers citing that demand is weak and buying interest dissipated.

Private mines in Balaghat continue to face pressure in the market on weak demand and increased cost of mining in the rainy season. Indian manganese ore market was subdued, as demand for manganese alloys remains weak, along with comparatively better demand for imported ore, which holds a sizeable share of the trading volume.

Many mills have lowered production and some mines have even had to stop producing, as they are sitting on a sizeable inventory and are faced with persistent poor demand.

“Purchasing has tapered down very much”, stated a miner from Balaghat.

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.

SteelMint assessed that it is not because of the prices of manganese ore but the lack of demand for the alloy which is resulting in buyers being uninterested in procuring the raw material.

Imported Manganese Ore Market Remains Weak

Imported manganese ore market is also quiet in India with low manganese alloy production. Prices have also been kept in check on the back of falling Yuan and sufficient manganese ore stock at Chinese ports.

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 3.2/dmtu and Gabon 44% is USD 3/dmtu CIF India.

Imported manganese ore prices could come down further with the unfavorable exchange rate in India and China increasing the cost of importing.

Prices incld royalty
Source: SteelMint Research
Exchange Rate: USD 1 = INR 65.8