Chinese seaborne manganese ore prices climb further but buyer sentiment weakens

  • Tuesday, March 19, 2024
  • Source:ferro-alloys.com

  • Keywords:Chinese seaborne manganese ore prices
[Fellow]Freight prices fell significantly in the week to March 8.
 
Both lower-grade and higher-grade prices moved up in the past seven days despite different dynamics playing out in each market.
 
Fastmarkets calculated its manganese ore high grade index, cif Tianjin at $4.42 per dry metric tonne unit (dmtu) on March 8, up by 4 cents from $4.38 per dmtu on March 1.
 
Fastmarkets’ weekly manganese ore index 37% Mn, cif Tianjin was calculated at $4.02 per dmtu on March 8, up by 5 cents from $3.97 per dmtu on March 1.
 
Lower stocks of semi-carbonated manganese ore at China main ports, as well as reduced supply from origins, have driven upward price momentum since late December 2023.
 
Meanwhile, sources say higher-grade manganese ore supply and stocks remained comparably higher, with the market following the uptick in the lower-grade market.
 
Fastmarkets’ assessments of manganese ore stocks at Qinzhou and Tianjin ports were in the range of 5.02-5.18 million tonnes on Monday March 11, compared to 5.03-5.53 million tonnes on March 4.
 
A port source told Fastmarkets, among the total manganese ore stocks in China, the inventories of high-grade manganese ore was around 1.3 million-1.4 million tonnes, compared to 1.1 million tonnes of semi-carbonated manganese ore inventories.
 
“The semi-carbonated ore stocks can support only 1.5 months of manganese alloy production in northern China, while higher grade ore stocks can support around three months of alloy production in the region,” the port source said
 
There was market chatter around logistic issues in Gabon and increased demand in India reducing high-grade supply to China.
 
But sell-side market participants said they had not noted greater demand for manganese ore from India, saying it was “business as usual” and there was no mass restocking happening.
 
A manganese ore producer source said they had heard of rail maintenance impacting supply out of Gabon, but only to a very limited extent.
 
Buyer sentiment in the pricing period weakened however, with alloy prices falling and proposed production cuts by manganese alloy smelters.
 
“I know three smelters in Ningxia have halted output of manganese alloy and another one told us it may [conduct maintenance] at the facility if the weak alloy market persists,” a Chinese manganese trader said.
 
Freight prices fell significantly in the week to March 8.
 
Fastmarkets’ manganese ore index, 37% Mn, fob Port Elizabeth was calculated at $3.15 per dmtu on March 8, a week-on-week rise of 14 cents from $3.01 per dmtu. fastmarkets
  • [Editor:kangmingfei]

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