- Import costs increase amid higher freights
- Smelter caution amid high prices limits trade
Mysteel: Manganese ore prices in China rose to a 20-month high during 19-25 March amid the positive sentiment prevailing in the domestic market.
During the sample week, prices of South Africa-origin 36.5% grade manganese ore at North China’s Tianjin port under Mysteel’s assessment had reached RMB 44/dry metric tonne unit (dmtu) ($6.4/dmtu), including the 13% VAT, by 25 March, climbing by RMB 4/dmtu w-o-w and marking the highest since 12 July 2024.
The firming prices were mainly supported by higher production costs and increased freights being borne by major overseas miners. The climb in global oil prices from the ongoing conflict in the Middle East has led to a rise in ocean freight costs, lifting the import costs for domestic manganese ore traders and encouraging them to raise their offers accordingly, Mysteel Global learnt.
However, transactions for manganese ore in the physical market slowed, as manganese alloy smelters preferred to purchase ore only to meet their immediate needs rather than build up stocks when prices are so high.
Manganese ore inventories at China’s major ports have increased slightly recently, even though the volume delivered to the ports declined, Mysteel Global noted.
As of 19 March, inventories of manganese ore at the ports monitored by Mysteel were calculated at 4.75 million tonnes (mnt), rising by 38,000 tonnes (t) from the prior week.
Mysteel’s other survey showed that the tonnage of manganese ore delivered to China by the four major exporters — South Africa, Australia, Gabon and Ghana – registered 552,100 t over 13-19 March, lower by 402,100 t on week.
Meanwhile, Chinese silico manganese prices have also remained firm on support of the strong manganese ore prices. On 25 March, Mysteel assessed the national price of 6517 silico manganese at RMB 6,098/t including the 13% VAT, higher by RMB 137/t from one week earlier.
For the time being, many market participants are waiting for the next round of offers to be tabled by major overseas mines for shipments to China in May, and for the actual run rates of Chinese manganese alloy smelters. These are regarded as the primary factors behind recent movements in manganese ore prices.
Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.
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