SHANGHAI, Mar. 7 (SMM) --

Domestic market:

Trading volumes at ports were moderate and prices were stagnant. SMM believes there is little room for manganese ore prices to rise any further while anticipating no further decline in manganese alloy prices. Market players understand that CIF prices for manganese ore may continue to go up, but upside space should be limited. Traders refrained from buying at current high prices.

Transactions:

Trading activity in China’s northern ports was brisker than in southern ports and traded prices in northern ports remained high. Prices in northern ports were still RMB 1-2/mtu higher than in southern ports, and even RMB 5/mtu higher for selected manganese ore class, a sign of anemic downstream demand in southern ports. Some market players note that downstream demand will improve with the onset of high-water period in south China.

To sum up, manganese alloy capacity is in surplus in China, while manganese ore prices are staying high, plaguing manganese alloy producers and manganese ore traders.