Imported Manganese Ore market witnessed a fall in prices on account of a lackluster Manganese Alloy market in China.
Prices of imported Manganese Ore are under pressure and likely to come down if the lack of demand persists or if Manganese Alloy prices don’t hold firm. The stock levels of Manganese Ore on Chinese ports are low and nobody is willing to take long positions on Ore unless there is clarity in the direction of Manganese Alloys market.
However, a source opined that a low stock level has lent a support to Manganese Ore prices but weakening manganese alloy market is countering the same.
SteelMint learned that the traders are unwilling to lower their offers as they have purchased the ores while their prices were high and may lose margins if they sell the same at low prices.
Considering the current market scenario, major miners have lowered their prices for May’18 shipments. Current offers for South African 37% carbonate ore are at USD 8.35/dmtu. Similarly, Australian 46% manganese ore offer is stable at USD 9.1/dmtu CIF India, while offers for Gabon 44% ore is at USD 8.7/dmtu CIF India.
SteelMint assessed that Manganese Ore prices are under pressure and could fall slightly but nobody expects a plunge as consumption has been steady. However, on account slack Chinese steel market and demand from steel mills for Manganese Alloys weakening, the manganese alloy producers may lose interest in procuring the raw material at higher prices which may add to the vulnerability of Manganese Ore prices.
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