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In recent weeks, there has been a slight adjustment in the import price of manganese ore. This weakness is mainly attributed to the period of intensified volatility in the manganese alloy market. In addition, the decrease in production in the manganese alloy market has also suppressed demand.
The price of high-grade manganese ore (44%) in Gabon is $9/dmtu, a year-on-year decrease of $0.15/dmtu.
The South African manganese 37% price reached $5.3/dmtu CIF India, a decrease of $0.25/dmtu, reflecting limited demand for low-grade manganese alloys.
The price for high-grade manganese ore (46%) in Australia remains unchanged at $9.6/dmtu CIF India.
Factors affecting ore prices
Logistics bottlenecks and geopolitical tensions hinder exports: The Indian manganese alloy export industry is facing a convergence of logistics and geopolitical headwinds, hindering overseas demand
Global Container Shortage: The severe shortage of empty containers in the global shipping industry severely limits export opportunities for Indian manganese alloy producers. This logistics bottleneck restricts buyers from obtaining Indian products.
European summer seasonality: The European market, the main destination for Indian manganese alloys, is currently experiencing a seasonal slowdown in purchasing activity. The expected continued summer vacation until July further suppressed export demand.
Geopolitical tensions in the Middle East and North Africa: The intensification of geopolitical tensions in the region has led to a decrease in import inquiries in these markets. This adds another layer of complexity to the export environment. All these factors work together to keep imported ore inquiries at the lowest level, leading to a decline in ore prices.
Market uncertainty triggers production cuts: Indian manganese alloy producers have taken strategic measures to cope with a period of market uncertainty. The major producers located in Raipur, Vijag, and Durgabur have implemented a 30-40% reduction in production to mitigate potential losses. In some cases, smelters may place furnaces in maintenance positions.
These production adjustments have led to a decrease in inquiries for imported manganese ore. With the decrease in alloy production, the direct demand for raw materials has weakened.
The arrival volume of manganese ore increased year-on-year:
The shipment volume of manganese ore to India increased by 139% year-on-year. From July 3rd to 9th, the weekly shipment volume increased from 90,040 tons last week to 215,411 tons.
The future trend of manganese ore prices depends on the development of the interrelated manganese alloy market. Closely tracking production levels, demand patterns, and price changes will provide valuable insights into potential changes in ore demand and pricing.