The structural supply gap in manganese ore has not yet been resolved, with evident supply-demand imbalance

In May, the price of Australian manganese ore lumps averaged 63.7 yuan/mtu, up 65.45% MoM, Gabonese lumps at 62.35 yuan/mtu, up 66.80% MoM, and South African semi-carbonate ores at 52.73 yuan/mtu, up 49.24% MoM. Supply side, before the supply returns to normal, South32 may seek alternative plans, but the structural supply gap in manganese ore remains difficult to fill due to limited transportation capacity. Demand side, with stronger cost support, SiMn alloy spot prices were on an upward trend. Due to expanding profits, SiMn alloy producers showed a strong willingness to ramp up production, leading to growing orders for manganese ores.

Entering June, manganese ore inventory at ports is expected to be further consumed, and high-grade manganese oxide ore prices will still have an upward trend, with suppliers holding back at low prices. SiMn alloy producers in Inner Mongolia and Guangxi, which are in the maintenance period, may return to normal production. Some SiMn alloy producers have orders scheduled until June, and SiMn alloy procurement volume for June by mainstream steel mills increased compared to May, providing decent support for prices. Therefore, manganese ore prices in June will run firm, with a further upward trend.