Imported manganese ore stocks at China’s six ports grew to 4.7 MnT by November 29, a new high since Mysteel started the survey in November 2010, up for the second week by another 15,000 MT on week, and its price fell on shrinking demand from Chinese steel mills, according to Mysteel’s latest survey.
“Manganese ore consumption at the Chinese ports improved moderately over the past week, but new arrivals have exceeded the pace of consumption, so port stocks still rose,” a market watcher in Shanghai said.
The latest detailed data from China’s General Administration of Customs (GACC) did show that China’s manganese ore imports reversed up to a five-month high of about 3.2 MnT for October, up 17.1% or 470,000 MT on month.
High inventories at Chinese ports while stagnant demand from domestic steel mills in winter months amid the slowing steel consumption pressured the domestic manganese price, and Mysteel’s price index of South Africa-origin 36.5% grade manganese ore at North China’s Tianjin port, for example, decreased steadily to Yuan 35.08/dmtu (USD 5/dmtu), or down another Yuan 1.14/dmtu on week or Yuan 0.26/dmtu on month, according to Mysteel’s data.
In the near term, China’s manganese ore port inventories prices are expected to stay stressed with the shrinking demand from manganese alloy producers.
“Some (Silico Manganese) smelters in South China have halted production after having consumed all the in-house Manganese ore stocks in hand amid high cost and low selling prices,” the Shanghai-based market insider disclosed. Manganese alloy producers in South and Southwest China usually prefer to smelt with the more cost-effective hydropower rather than thermal power in the wet season, Mysteel Global notes.
Mysteel’s weekly survey among China’s 121 Silico Manganese smelters showed that daily Silico Manganese output over November 22-28 came in at 27,124 MT/day, down 574 MT/day on week, in sharp contrast to high manganese ore piles at the ports.
As of November 29, the price for 65-17 grade SiMn in South China remained unchanged at Yuan 5,925/MT EX-Works and including the 13% VAT, the same level from one week before, Mysteel’s data showed.
This article has been published under article exchange agreement between Mysteel Global and SteelMint.
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