India: MOIL hikes manganese ore offers by up to 40% m-o-m for May'24

• PSU miner lifts high-grade offers by 40%, low-grade by 25% m-o-m
  
  
• Imported manganese ore offers up 7% m-o-m amid supply pressure
  
  

MOIL has increased manganese ore prices today for May'24. Mn grades above 44% have winessed a 40% growth in offers m-o-m, while lumps below 44% have increased by 25%, BigMint learned.

Factors driving prices

1. Imported manganese ore prices surge on supply constraints: South African origin Mn ore 37% prices witnessed a 7% m-o-m rise to a monthly average of $4.45/dmtu in April 2024, compared to $4.14/dmtu in March. For Australian (46%) and Gabonese (44%) origin manganese ore prices jumped by 15% to $5.48/t in April as against $4.78/dmtu in March and $5.13/dmtu in April.

India's dwindling high-grade ore reserves prompted a strategic move towards imports, revitalising mining in key manganese-producing hubs like Australia and Gabon. Heightened activity in Gabon marked a significant response to India's shifting ore demand and scarcity of domestic resources.

In Q3FY'24, South32's manganese ore production declined by 8% q-o-q to 1.175 wmnt. Australian manganese fell by 18% to 0.645wmnt. South32 withdrew its FY'24e forecast for Australian manganese output of 3.4 wmnt due to tropical cyclone Megan's impact on their GEMCO unit. These factors collectively got replicated in inflated prices of imported manganese ore.

2. Indian domestic silico manganese prices surge: The Indian silico manganese market saw an uptick by 7% in April, with the grade 60-14 rising by INR 4,840/t ($58) m-o-m that settled at monthly average of INR 71,000 /t ($851/t) when compared to INR 66,160/t ($793/t) exw Raipur in March 2024. This marked a 11-month high prices for silico manganese. The price hike was primarily driven by the escalated prices of imported manganese ore that directly put cost pressure on the domestic producers. Additionally, the strong export demand further fueled the upward momentum in the domestic silico manganese market.

3. India's silico manganese export prices rise: Silico manganese (60-14) export prices witnessed a 4% m-o-m rise by $35/t to a monthly average of $850/t FOB India in April 2024, compared to $815/t in March 2024. While, silico manganese (65-16) increased by 3% ($32/t) to $947/t FOB India in April 2024, as against $915/t in March 2024. Silico manganese export prices went up due to a combination of domestic and global market forces. Silico manganese export prices surged due to a blend of domestic and global market dynamics, amidst a transient oversupply in the Indian market. Vendors strategically adjusted rates to accelerate sales, enhancing competitiveness in the international arena.

4. Indian steel billet prices rise by 8% m-o-m: The domestic billet price rise could also be a factor in scaling the offers up. The prices stood at monthly average of INR 42,860/t ($514/t) in April 2024 when compared to INR 39,830/t ($477/t) in March 2024 exw-Raipur up by INR 3,030/t ($36). This price expansion was attributed to various factors including elevated prices of sponge iron and increased silico manganese prices. Another reason may be the tightness in scrap market that compelled the producers to rely on sponge iron ultimately rising the billet prices.