- Global ore producers implement production adjustments
- Weekly cargo arrivals at Indian ports edge down
Imported manganese ore prices have recently seen a slight increase after a period of stability despite softening demand for manganese alloys.
- Australian high-grade ore: Australian high-grade (46% Mn) ore witnessed an increase of $0.05/dmtu to $4.40/dmtu due to supply constraints.
- Gabonese high-grade ore: Prices of Gabonese high-grade (44% Mn) ore edged up by $0.05/dmtu to $4.10/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 rise of $0.10/dmtu to $4/dmtu. Limited upward price movement is possible due to existing production cuts in the region. This level was last seen three months ago.
Market overview
Global manganese ore prices rise: The downstream manganese alloys market is currently characterised by uncertainty, leading to a cautious sentiment. Participants are adopting a wait-and-see approach due to fluctuating demand.
To counter low prices that are not covering operational costs, global manganese ore suppliers have strategically increased their offers. This is evident in the pricing set by Jupiter Mines Limited for its high-grade South African manganese ore. The company has fixed a CIF China price of $3.9/dmtu for December 2024 shipments, indicating a potential upward trend in global manganese ore prices.
Overseas ore producers adjust to market dynamics: Global manganese ore producers are implementing strategic production adjustments in response to uncertain market conditions and reduced demand from smelters. This strategic move aims to balance supply and demand, ensuring optimal utilisation of resources.
Eramet, a leading global manganese ore producer, reported a decline in production and transported volumes in Q3CY’24, reflecting the challenging market environment. The company has revised its full-year production forecast to account for these adjustments.
These developments highlight the evolving dynamics of the global manganese ore market, where producers are adapting to changing demand patterns and economic conditions.
Weekly cargo arrivals drop: Manganese ore imports to India decreased by 26% w-o-w, with shipments totaling 47,176 tonnes between 30 October and 5 November, 2024).
While the outlook is uncertain, continued monitoring of manganese alloys prices, freight rates, and steel production are crucial. India’s import focus is driving global market activity. Close attention to these factors and potential new suppliers are essential for navigating this challenging landscape.
Article credit Bigmint
