- Shipments from SA, Australia, Gabon plunge 27%
- Weak market sentiment pressures domestic prices
Mysteel: China’s manganese ore imports totalled 3.93 million tonnes (mnt) over the first two months of this year, posting a significant decline of 1.18 mnt or 23.1% from the same period last year, according to the latest data released by China’s General Administration of Customs (GACC) on 20 March.
Manganese ore delivered to China declined sharply during the first two months, as major overseas mines cut their shipments to China.
The result was in line with Mysteel’s survey, which showed that the volume of manganese ore delivered to China by the three major exporters- South Africa, Australia, and Gabon- totalled 2.48 mnt over January-February, slumping by 936,000 tonnes (t) or 27.4% compared with the same period last year.
With lower imports and steady consumption of ore among Chinese manganese alloy smelters, inventories of the raw material at China’s major ports declined fast over January-February, according to Mysteel’s weekly survey, with the total tonnage reaching 3.9 mnt by the end of February, lower by 1.29 mnt or 24.9% from two months earlier.
Many Chinese silico manganese smelters kept their run rates at a relatively high level over the first two months. Mysteel’s monthly survey of the 187 Chinese smelters under its tracking showed that their total silico manganese output during January-February registered 1.7 mnt, only down by 4.7% y-o-y.
So far this year, major overseas miners have steadily raised their offers of manganese ore to China, lending some support to domestic prices of this ore from the cost side, Mysteel Global noted.
For example, Eramet Comilog, a major manganese ore exporter from Central Africa’s Gabon, has raised its manganese ore prices of 44.5% Mn content manganese lump ore to $5.1/dmtu for shipments to China in April, up for the fourth consecutive month with a total rise of $1.15/dmtu, according to Mysteel’s survey.
However, domestic prices of manganese ore retreated in the second half of February, as market sentiment weakened following the significant retreat in silico manganese prices in both the physical and futures markets, the data show.
As of 28 February, prices of South Africa-origin 36.5% grade Mn ore at North China’s Tianjin Port under Mysteel’s assessment was at RMB 37/dry metric tonne unit (dmtu) ($5.1/dmtu), including 13% VAT, falling by RMB 6/dmtu from its previous peak on 11 February, though tags were RMB 3.5/dmtu higher than at the end of last December.
By the end of February, Mysteel assessed the national price of 6517 silico manganese at RMB 6,116/t, including 13% VAT, slipping by RMB 662/t compared with the recent high recorded on 10 February.
Silico manganese prices in the derivatives market have fallen more sharply, with the most-traded contract on the Zhengzhou Futures Exchange for delivery in May closing the daytime trading session at RMB 6,332/t on 28 February, sliding by RMB 968/t from the contract’s settlement price recorded on 7 February, according to the exchange’s data.
Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.
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