India: Imported Manganese Ore Prices Rises on Shortage at Chinese Ports

Seaborne Manganese Ore prices raised amid shortage of material at Chinese Ports. South African Carbonate Ores price was raised last week and this week Australian and Gabonese Ores followed the suit. However, the sudden increase in the global freight rates have decreased margins on Manganese Ore Shipments.

Freight rates have risen significantly for routes from South Africa, Brazil and Black Sea to China owing to the increased demand for commodities such as soybean and grain. Buyers of Managanese Ore booked deals with a pre-assumed freight rates as the freight rates are finalized closer to the time of Shipment, which leaves the buyers stuck as they cannot make profits unless they postpone the shipment and wait until the freight rates are down again. Although, this is a seasonal trend but this jump is something which was unpredictable.

Market participants believe that the prices may increase further in the near future. Prices for Australian Lumps, Mn 46%, Fe 5% are at USD 6.6/MT CIF India. South African Carbonate ore (Lumps, Mn 37-38%) has increased to USD 5.65/MT and Manganese Ore Lumps, Mn 44%, Fe 5% from Gabon is at USD 6.05/MT CIF India.

On the future Outlook, buyers predict that the prices may rise in line with low inventory at ports and less availability of vessels to China. Buyers are mostly on wait and watch mode, as the port inventory is getting used up, they are relying more on fresh stocks, but the increased freight charges are making the buyers pessimistic about buying fresh materials.