Managese Alloy Price dropped  Manganese Ore Stock shrinking Up

{Ferro-Alloys.com} Breaking News: Chinese Steel mills have delayed to purchase Manganese Alloys for April till today, and expected they will make final decision next week. According to investigation from HBiS and Shagang Steel, two major steel plants are major customers of SiMn and Femn, have not decided to buy, even they already asked suppliers to accept at 8200RMB/mt deliver to their Warehouse, and quantity also cut down by 7000K than same period YoY. Due to bad market of steel production, 20-35% steel capacity have not recovered.in North China 

?SiMn producers are facing hard position now, most of producers now have lower price of Mn ore  which it just arrived to China if they bought in Jan and Feb,  but  the produers who only buy mn ore from spot market faced big lose if SiMn price will be fixed at 8200RMB/mt。

?Due to this reason, some of Smelter of SiMn do not buy any mn ore from spot or future market nowadays .All most of them stopped to buy cargo in May shipment,  90% of smelters have Mn ore inventory till end of June ,and if price of SiMn dropped further, they have to cut down capacity or stopped production. According to inventory record, Mn ore inventory went to 1.7 million tons in Tianjin and 300,000mt in Caifeidian port, 400,000mt in Qingzhou port, and another 400,000mt in other ports, total  inventory already went up about 2.8 million tons.

?Price : Spot price dropped, MN Lumpy 44 grade，offered RMB60-62, dropped 5RMB/Dmtu;

?Mn 36%, offered RMB57-58/dmtu, dropped 5-6RMB; 44% Mn lumpy from Brazil offered RMB48-50/dmtu, dropped 5-7RMB/Dmtu.  there are  no firm transacted price till today even price offered much lower than last week. 

?Future Price: most of Smelters have not bought any cargoes yet except existed long  term transanction, they are very careful about risk under such worse situation of steel market effected mostly by  Trade War between US and China. and they do not dare buy any cargo if price over usd7/dmtu comparing with Alloys prices rate in the market at that time.

One Big smelter told Ferro-alloys.com , they will not buy in May directly from Miner, they will buy some spot cargo and if no profit, they will reduce production and less consumption of Mn ore. One Big trader of Mn ore also worried about Mn market and said it will be too risk if price above 7usd.

Ferro-Alloys.com PMI INDEX OF MN ORE dropped  to 45% in  March than  65% in Feb. that means price hiked to top and the trend is converted to downside according to many senerios.

• [Editor:admin]