Decline in global manganese ore prices boosts imports
Morning Brief: India's imports of manganese ore rose by 21% y-o-y to 6.64 million tonnes (mnt) in FY'25 against 5.47 mnt in FY'24, as per provisional data available with BigMint.
Manganese ore consumption has been on the ascendant over the last few years on higher domestic crude steel production and increased production and exports of manganese alloys. In FY'24, manganese ore consumption had increased by 18% y-o-y.
Data on grade-wise imports of manganese ore show that Mn35-46% was the highest imported grade, with total inbound shipments assessed at around 4.7 mnt. Imports of high-grade ore, Mn46% and above, were assessed at 0.47 mnt, while imports of Mn25-35% mid-grade material stood at over 1.4 mnt.
Why manganese ore imports edged up?
Increase in alloys production: Manganese alloys production increased by about 27% y-o-y to 5.35 mnt in FY'25 against 4.2 mnt in the preceding fiscal. This was on the back of capacity additions in key regions: Vizag alone saw its total capacity rising by 60-70 MVA - in terms of the power factor and sizes of furnaces varying from 9-33 MVA. These cumulatively have a capacity to produce 10,000-15,000 t per month. That apart, in Raipur, major smelters set up fresh 70-80 MVA furnaces. Therefore, manganese ore requirement increased.
Rising manganese alloys exports: Manganese alloys exports from India have increased by 18% y-o-y to 1.96 mnt in FY'25 against 1.66 mnt in FY'24. This is a direct incentive for producers to raise output and hence higher raw material demand and consumption.
Domestic ore production way short of demand: Manganese ore production in India rose to 3.75 mnt in FY'25 from 3.38 mnt in FY'24. Domestic manganese ore demand witnessed a significant rise during the July-September 2024 and January-March 2025 periods. This surge can be attributed to the expansion of smelting capacities in key regions like Vizag and Raipur. But the increase in ore production is still inadequate to meet rising demand.
Higher crude steel production: India's crude steel production is expected to increase by 6% y-o-y in FY'25 to reach 152 million tonnes (mnt) from 144 mnt in the preceding fiscal. Notably, crude steel production had increased more sharply, by over 14% y-o-y, in FY'24. This growth has driven an increase in the production and consumption of manganese alloys and ore.
Decline in imported ore prices: High-grade imported manganese ore prices to India were at a five-year-low of $4.06-4.36/dmtu (for Mn grades 44% and 46%) during November 2024. South African 37% lumps offers to India were at $3.96/dmtu, their lowest since end-February 2024. Therefore, buyers were encouraged to raise their inventories. India reliance on imported manganese ore is around 60% of consumption due to the lack of high-grade domestic resources.
Outlook
India's imports of manganese ore are expected to increase slightly amid rising steel production. Additionally, it is expected that imported manganese ore prices might ease in the near term, which could boost import volumes. Monitoring the consumption trends by domestic steel mills and movements in the export markets will be crucial in determining manganese ore imports.
