Weak demand for manganese alloys in China has caused piling up of Manganese ore stock at Chinese ports.
The high and rising volume of Manganese Ore at major Chinese ports has created selling pressure on manganese ore traders with its prices witnessing a constant decline.
The current manganese ore prices are assessed at USD 9.51-9.67/dmtu for 46% Australian ore at Xingang port and USD 9.83-9.99/dmtu at Quanzhou port. Similarly, the price for 37% grade carbonate ore from South Africa is assessed at USD 8.88-9.04/dmtu at Xingang port and USD 9.04-9.35/dmtu at Quanzhou port.
Despite the stock level of manganese alloys being moderate with steelmakers, pressure persists on the sellers due to low buying interest from steelmakers, thus making the turnaround of the declining market difficult. Similarly, weak demand for manganese ore has driven its stock level up at ports, forcing the traders to give in, on the prices.
The whole chain of manganese industry has been under pressure in the first quarter affected by diminishing demand for the alloys by steelmakers. However, Steel producers in China have limited inventory, with the producers that have been scaling down since mid-March might raise production levels soon, which will improve the consumption rate of Manganese alloys and Manganese Ore.
Though there are some supportive voices about manganese ore market to see an uptick in May, but until pressure on stock sales eases the downward trend for the commodity is unavoidable.
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