Manganese ore offer prices have increased for September delivery, tracking silico manganese prices and rising demand from China.
Manganese ore prices are firm in the international market due to improved demand of silico manganese in the Chinese domestic market. Most of the smaller silico manganese producers in China, that are highly polluting in nature have suspended their production due to the strict and ongoing environmental inspections. Taking advantage of the situation the bigger producers have decided to produce more and sell at a better price. This has enabled the manganese ore buyers in China to procure material at higher prices too. A deal for South African carbonate Ore was heard to be concluded at USD 3.2/DMTU CIF China for August shipments, which is within end users’ acceptance. Offers for India is expected to be at similar levels. Market sources also revealed that major maintenance and development work is going on at the Port of Durban and Richards Bay in South Africa, which is a major reason for bad logistics in South Africa and delayed shipments.
Indian producers have increased silico manganese prices in the domestic market seeing the overall demand. There is panic buying in the market as most partipants believe prices to go on rising this week. There are fewer offers for imported manganese ore to the Indian market mainly because most miners prefer to sell to China when Chinese demand is strong. Eramet, Gabon has increased its price by 70 cents, and is offering 44% grade at USD 3.4/DMTU CIF India. BHP Australia has not yet offered its material to the Indian market but in all likeliness it will also increase its offer prices by a similar margin.
International prices of manganese ore are mainly driven by Chinese demand and it is expected to remain firm at least for this month. SteelMint assessed that silico manganese prices typically set the direction for manganese ore prices.
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