After a rough ride in 2020, manganese ore moves north in Jan ’21. Prices of imported carbonated ores of South African origin have increased by up to 21% in the past month owing to lowered shipments and reduced production from various miners globally. Recent bullishness in the alloy sector along with the increased buying appetite of Chinese traders is behind this spurt in prices.
Meanwhile, as the prices of manganese alloys improved, manganese ore giants increased their offer prices by around 18% m-o-m for February shipments. This boosted the sentiments of the traders and the quotations for manganese ore increased in the spot market by up to 13% w-o-w.
China:
The spot market of manganese alloys has shown a positive growth continuously since the first week of December. This also resulted in higher tender prices for procurement of Silicomanganese by major steel mills in China. The tender prices increased by up to RMB 890 m-o-m amidst bullish sentiments. Meanwhile, Chinese buying tendencies have improved before their New Year holidays as stocking of material by the plants increases in China. The port inventories have shown continuous decline post mid-Nov ‘20 which also contributed to the bullish sentiment.
Chinese manganese ore Inventory
Chinese manganese ore inventory has always been a critical factor in the ore prices. The inventory at ports is now getting consumed as exports from South Africa and Brazil dropped in the past two months because of logistics concerns. The higher prices of alloys are not deterring the steelmakers to procure more.
India:
In India, except for a few large-scale producers of manganese alloys who procure regularly every month, rest of the producers have enough stocks for the next three months and are avoiding any procurements. However, the prices of manganese ore are further supporting the alloys market and the upswing continues. To keep the price parity, domestic producers have also increased their offer levels by up to 15% m-o-m. This hike has gained acceptance as the steel prices are bullish and the steelmakers are accepting higher prices.
Current Assessments:
- CNF India, S. African Mn 37.5%: $4.65/dmtu
- CNF India, Gabonese Mn 44%: $5.05/dmtu
- CNF India, Australian Mn 46%: $5.4/dmtu
- CNF China, S. African Mn 37.5%: $4.55/dmtu
- CNF China, Gabonese Mn 44%: $4.9/dmtu
Outlook:
Prices of manganese ore are expected to follow the uptrend in the upcoming weeks amidst bullish sentiments.
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