Manganese might not be something most people think about every day, but it plays a very important role in the modern industrial world. From helping produce steel to being part of battery technology, manganese is a behind-the-scenes material that supports construction, manufacturing, and even some of the gadgets we use.

In the second quarter of 2025, the price of manganese ore saw a significant decline. According to PriceWatch, prices dropped by $5.50 per DMTU (Dry Metric Tonne Unit), FOB Brisbane, which works out to a 13.16% decrease compared to the previous quarter.

This price fall reflects a mix of factors, most notably weaker global demand, especially from alloy producers and the steel industry, and rising inventories in key consumer markets like China. Let’s take a closer look at what’s going on in the manganese market, why this price trend is happening, and what it might mean for the future.

Understanding the Basics: What Is Manganese and Why Does It Matter?

Before diving into the numbers, it's worth understanding what manganese is used for. The majority of manganese goes into the production of ferroalloys, which are essential ingredients in steelmaking. Manganese improves the strength, durability, and workability of steel which means it’s critical for industries like construction, automotive, and infrastructure development.

So when manganese prices fall, it often reflects a slowdown or caution in these bigger industries.

Price Drop in Q2 2025: The Numbers

According to PriceWatch, the price of manganese ore fell from earlier highs to a new level that represents a 13.16% quarter-on-quarter decline. That’s a notable dip, especially considering that commodity prices typically don’t swing that sharply unless there’s something meaningful going on in the background.

The new pricing $5.50 lower per DMTU (FOB Brisbane) shows that sellers had to adjust to reduced demand and growing stockpiles, particularly in large buying markets like China.

Why Are Manganese Prices Falling?

Several reasons are contributing to this current price trend. Let’s break them down in simple terms:

1. Weaker Demand from Alloy and Steel Producers

The primary reason for the price drop is lower buying activity from alloy producers, who are manganese’s main customers. These companies, which create ferroalloys for steelmaking, are facing narrowing profit margins. That means they’re making less money per unit of product, so they’re being more cautious with their purchases.

Meanwhile, the steel industry itself is in a cautious phase. Global economic uncertainty and cost pressures have led to slower production growth, especially in construction-heavy sectors. When steel producers slow down, they buy less alloy and that trickles back to manganese demand.

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2. High Inventories in Key Markets

At the same time, inventories are piling up. In major manganese-consuming countries like China, stock levels are already high. This creates a situation where buyers aren’t in a hurry to place new orders. They already have enough in their warehouses.

When supply is plentiful and buyers are slow, prices tend to fall and that’s exactly what we saw in Q2 2025.

Why Aren’t Producers Cutting Supply?

Interestingly, despite the price decline, major manganese producers particularly in Australia have not rushed to cut production. That might seem surprising, but there’s a simple explanation.

1. Prices Are Still Above Production Cost

Even with the recent decline, current manganese prices are still above key production cost levels for most large miners. That means they can still make a profit, albeit a smaller one, and so they have little incentive to shut down operations or reduce output significantly.

2. Australian Output Recovering

It’s also worth noting that Australian manganese output is gradually recovering after earlier weather-related disruptions. Some mining areas faced heavy rains and logistical challenges in previous months, which had limited production temporarily.

Now that those issues are easing, mines are coming back online. That’s adding more supply to the market which, while good for long-term stability, also adds to short-term price pressure.

Is There Any Hope for a Rebound?

Despite the downturn in Q2, the outlook isn’t all negative. There are signs that the manganese market might stabilize or even recover later in the year.

1. Potential Rebound in Demand

According to PriceWatch, some analysts are optimistic that if infrastructure and construction activity picks up, particularly in Asia and parts of Europe, manganese demand could rebound.

Projects in public infrastructure, real estate, and automobile manufacturing often involve a lot of steel, and that means more demand for manganese. If these sectors show stronger performance in the second half of the year, it could boost buying sentiment and firm up prices.

2. Market Adjustments Take Time

Markets don’t turn around overnight. But a steep drop in prices often leads to more cautious production planning, smarter inventory management, and gradual correction. If buyers begin to feel that prices have bottomed out, they may begin restocking, which could also support a recovery.

The Bigger Picture: What This Means for the Industry

Let’s break this down for the different players involved:

• For producers (especially in Australia), the price drop is a signal to stay efficient and keep an eye on costs. So far, they are still operating above breakeven levels, but any further drop may force more difficult decisions.

• For alloy makers and steel producers, the lower manganese prices might offer some temporary relief on input costs, but broader market weakness still weighs on overall profitability.

• For traders and buyers, the focus will be on timing purchases wisely, possibly taking advantage of the lower prices now before any rebound happens.

• For policymakers and planners, it’s a reminder of how connected global commodity markets are to industrial growth and infrastructure planning.

Conclusion: A Challenging Quarter, but Not a Collapse

In summary, the manganese price trend in Q2 2025 has been shaped by weaker global demand, high inventories, and cautious buyer behavior. A 13.16% decline in prices, or $5.50 per DMTU from the previous quarter, marks a clear downtrend but it’s not a crisis.

Prices are still manageable for producers, and there’s hope that construction and infrastructure recovery in the coming months could support a turnaround.

For now, the manganese market remains in a wait-and-see mode with cautious optimism that a more balanced second half of the year could help stabilize the trend.