Mysteel: China’s total manganese ore imports for the first quarter of this year reached 5.86 million tonnes, falling by a sharp 1.4 million tonnes or 19.3% on year, according to the latest data released by China’s General Administration of Customs (GACC) on April 20.
The volume of manganese ore delivered to China stayed low during this year’s first three months. During March alone, China imported 1.93 million tonnes of manganese ore, lower by 302,780 tonnes or 13.6% from the previous month and by 10.3% compared with one year earlier, the GACC statistics showed.
However, consumption of manganese ore by manganese alloy smelters remained firm in March, as many smelters kept their run-rates high in the first half of the month given their healthy profit margins they enjoyed on alloy sales and the large number of orders they had received earlier, Mysteel Global learned.
Last month, China’s total silicomanganese (SiMn) output increased by 95,235 tonnes or 11.8% on month to reach 899,115 tonnes, with the daily output averaging 29,003 tonnes/day, higher by 293 t/d or 1% on month, according to Mysteel’s monthly survey among the 187 Chinese SiMn smelters it tracks. The sampled smelters host 99% of China’s SiMn smelting capacity.
With the low import volume and steady demand, manganese ore inventories at China’s major ports had slipped to 3.58 million tonnes by the end of March, lower by 326,000 tonnes or 8.4% from end-February, Mysteel’s other findings survey showed.
Domestic manganese ore prices strengthened during the first half of March thanks to the lower stocks at the ports and the support from the cost side with the higher offering prices tabled by major overseas mines.
For example, Eramet Comilog, the major manganese ore exporter from Central Africa’s Gabon, announced in mid-March that it was raising its price for 44.5% Mn content manganese lump ore for shipments to China in April to $5.1/dmtu, up by $0.35/dmtu on month, as reported.
Nevertheless, sentiment in the domestic market weakened in the second half of last month when SiMn prices in both the physical and futures markets softened, dragging down the prices of manganese ore, Mysteel Global noted.
As of March 31, the price of South Africa-origin 36.5% grade manganese ore at North China’s Tianjin port was assessed by Mysteel at Yuan 35.8/dmtu ($4.9/dmtu) including the 13% VAT, down by Yuan 1.2/dmtu on month or sliding by Yuan 3.2/dmtu from the recent high on March 12.
By the end of March, the national price of 6517 SiMn under Mysteel’s assessment was at Yuan 5,876/ including the 13% VAT, down by Yuan 240/t from one month earlier. In parallel, the most-traded SiMn contract on the Zhengzhou Futures Exchange for delivery in May closed the daytime trading session at Yuan 6,070/t on March 31, lower by Yuan 270/t from the contract’s settlement price on February 28.
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