Chinese Manganese Ore prices have recovered over the past week driven by the rise in prices of imported ore, with Mysteel’s price index of South Africa-origin 36.5% grade Manganese ore at North China’s Tianjin port reaching Yuan 34.14/dmtu (USD 4.9/dmtu) as of December 9, reversing up by Yuan 0.44/dmtu week on week, according to Mysteel’s data.
The recovery in domestic Manganese ore prices was mainly supported by the growth in offering prices tabled by major overseas miners exporting to China, Mysteel Global has learned. This lessened the pessimistic sentiment prevailing in China’s Manganese ore market and reduced the panic among domestic importers.
For instance, United Manganese of Kalahari (UMK), a Manganese ore producer and exporter in South Africa, has announced that for January deliveries its price for 36% Manganese ore will be higher by USD 0.4/dmtu on month at USD 3.9/dmtu CIF China, ending the successive reductions the miner had made over the prior four months.
In parallel, other Manganese ore exporters including Tshipi é Ntle Manganese in South African and Eramet Comilog in Central Africa’s Gabon also lifted their offering prices for January deliveries by USD 0.02-0.35/dmtu CIF China, Mysteel Global notes.
“The rebound in the offering prices of global Manganese ore exporters is undoubtedly benefiting China’s Manganese ore market, giving domestic (Manganese ore) suppliers some confidence to hold their offering prices at the current level or even try to raise them a little,” a Manganese ore trader in Shanghai told Mysteel Global.
However, prices of domestic ore are unlikely to see a substantial increase in the short term, as “(Manganese ore) supply is still in surplus for the time being,” he added.
Mysteel’s latest weekly survey showed that Manganese ore stocks at China’s six ports totalled 4.6 MnT as of December 6, still at a very high level though the total had retreated from the record high of 4.7 MnT reached just one week before.
Meanwhile, the domestic Manganese ore market also faces great pressure from the market for Silico Manganese, Mysteel Global notes. “The bidding price (for Silico Manganese) tabled by Hebei Iron and Steel Group (HBIS) for December was below market expectations, and this dampened the sentiment in domestic Manganese ore market,” according to another Shanghai-based industry watcher.
HBIS, a leading Silico Manganese buyer in North China’s Hebei province, planned to purchase 26,000 MT of Silico Manganese at Yuan 5,950/MT for December, according to Mysteel’s survey. Though the tonnage sought was higher by 1,390 MT on month, the steelmaker’s bidding price was lower by Yuan 150/MT from that for November.
This article has been published under an article exchange agreement between Mysteel Global and SteelMint Research.
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