Prices of high-grade imported manganese ore, originating from Gabon and Australia, went down by around 5% week-on-week (w-o-w), while those for South African origin remained stable. The fall in prices can be attributed to the lowered prices of manganese ore for June shipments. Most of the major mines lowered their prices for June shipments to bring them on par with the Chinese spot prices.
Key highlights
Indian manganese alloy prices rally on supply shortage:
Although the prices of imported manganese ore fell w-o-w, manganese alloy prices are increasing swiftly, owing to supply shortage.
Demand from the export market has surged, as indicated by the bookings for the next quarter, but most exporters are booked till the next two months, making supplies tight in the domestic market. Meanwhile, major domestic producers are already catering to government d and steel mills’ orders, both categories being bulk consumers.
Chinese port inventory increases by 10kt w-o-w:
Chinese manganese ore inventory at ports increased by 10,000 t this week, with a marginal drop in port-side prices by $0.5/dmtu w-o-w. Current stocks at Chinese ports are at 6.46 million tonnes (mn t) as against 6.45 mn t seen in the previous week.
Tianjin Port currently has an inventory of 4.52 mnt, as against 4.57 mn t seen last week.
Current assessment
Prices of imported manganese ore this week:
CNF China, Mn 37%, South African origin: $4.5/dmtu;
CNF China, Mn 44%, Gabonese origin: $4.7/dmtu;
CNF India, Mn 37%, South African origin: $4.65/dmtu;
CNF India, Mn 44%, Gabonese origin: $4.8/dmtu;
CNF India, Mn 44%, Australian origin: $5.15/dmtu
Outlook
Chinese ports reported an increased
number of inquiries late last week after Chinese silicomanganese prices rebounded.
Most of the demand was for South African manganese ore, and the bullish sentiments in manganese alloys might have an effect on the pricing dynamics of South Africa-based ores. However, most producers believe there may be further price corrections in the coming week.
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