Chinese Silico Manganese Prices are unchanged as compared to the previous week. Major producers are releasing their purchase prices for August, while others are seeking for long term contracts. Although a large steel group in North China has made two round of inquiries and has bumped up the price (the first inquiry is RMB 7,800/MT (USD 1109/MT), the second is RMB7,850/MT(USD1116/MT)), the tender for August is yet to be finalized, triggering off various speculations. As the actual situation stands, on the one hand, the power cut incidents in the main producing area Inner-Mongolia has been reeling out its effects (particularly an industrial park in Feng Zhen area is expecting to face 20 days power off and 1-3hours power cuts affecting industrial parks in the vicinity); on the other hand, the factory inventory is not as much as what they find it urgent to make offers. Moreover, the recent increase in the road freight due to intensified inspection on overload in Inner Mongolia and Ningxia-both main producing areas, resulting in difficulty for sourcing trucks. Under such circumstances, most of the participants expect that the final price by the iconic steel companies still stands a chance to soar up, along with the ongoing new round of tenders, gradually releasing demands. However, price reduction demand by those mills is still counterbalancing elements.
| Silico Manganese Tender Prices for August | |||
| Steel mill | Tender price for grade 65-17 (RMB/MT) | M-o-M (RMB/MT) | Quantity (MT) |
| HBIS | 7,850delivered, acceptance | ↓50 | 29610 |
| Xiangtan steel | Inquiry 7,800 | ↓130 | 14000 |
| Fujian sangang | 7,850 (half cash half acceptance) | ↓50 | 19000 |
| Jiangsu Zenith | 7,950 | / | 15000 |
| Jiangsu Shagang | 7,900-8,000 | / | 8000 |
| Nanjing steel | 7,900/7,950/8,000 | / | 13000 |
| Xinyu steel | 7,880 | ↓220 | 8000 |
| Jiu Jiang pinggang | 8,050 | ↑100 | 3000 |
| Guangxi Liu steel | Ongoing | / | 8000 |
| Valin Ly steel | Ongoing | / | 6000 |
| Valine steel tube | 7,880delivered, acceptance | ↓20 | 750 |
| Maanshan steel | 7,950,delivered,acceptance | / | 8400 |
| Anhui Yangzi steel | 7,950,delivered,acceptance | ↓30 | 9000 |
| Citic pacific | 7,850 | ↓100 | 2400 |
| Jiangsu Yonggang | 7,950 | ↓50 | 12000 |
| Anyang Yongxing steel | 7,880 | ↓70-120 | 5000 |
The higher enthusiasm of Manganese ore traders for more sales has coincidently met the lower purchasing enthusiasm from the downstream, pushing Manganese ore market to vulnerable position, and the actual transaction price tends to weaken. The weaker voice of the ore market is ultimately due to the large supply, which forced ore traders to passively accept the lower bid from downstream plants. In August, as the cost of mn ore decreased in the context of declining spot price, there will be a struggling process on low cost and high supply.
While waiting for the iconic Steel mills in the north to come up with indicative prices, the alloy manufacturers are wrapped in wait and watch mode, and keep a negative outlook on Manganese ore for a later stage, showing tepid procurement willingness by just replenishing stock as per demand causing a relatively high level of inventory. In the meanwhile, with the anticipation of low-cost ore which is scheduled to reach port intensively, the outlook on later mn ore market are diming and more mn ore traders are looking for more sales.
| Manganese ore Inventory Level at Different Chinese Main Ports | |||
| Port | 26-Jul | 2-Aug | Up/down |
| Tianjin | 2,560,000 | 2,570,000 | ↑10,000 |
| Qin Zhou | 1,000,000 | 980,000 | ↓20,000 |
| Caofeidian | 130,000 | 130,000 | — |
| Lianyun port | 9,000 | 8,000 | ↓1,000 |
| Nan tong port | 140,000 | 160,000 | ↑20,000 |
| Total | 3,839,000 | 3,848,000 | ↑9,000 |
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