SHANGHAI, Jun. 2 (SMM) –
Manganese ore prices at ports remained essentially unchanged, except for falling South African mixed carbonate manganese ore prices due to abundant supply. Most traders expect manganese ore prices to remain steady, while some anticipate a RMB 0-0.5/mtu rise. Hebei Iron & Steel Group’s #65/17 silicomanganese alloy tender prices for June were RMB 6,950/mt, but may be hiked by RMB 50-100/mt in the future.
In the Port of Tianjin, the mainstream traded price for Australian manganese ore (Mn48%, lump) was RMB 46/mtu; RMB 38.5/mtu for South African mixed carbonate manganese ore (Mn38%, lump), and RMB 38.5-39/mtu for South African high-iron manganese ore (Mn35-36%, Fe18%). In southern ports, the mainstream quotations for Australian manganese ore (Mn48%, lump) were RMB 44-44.5/mtu. Mainstream traded prices were RMB 38.5-39/mtu for South African high-iron manganese ore (Mn35-36%, Fe20%); RMB 38-38.5/mtu for South African mixed carbonate manganese ore (Mn38%, lump), and RMB 43.5/mtu for Australian high-silicon manganese ore (Mn36%, Si20%).
Inventories at ports were 2.3 million mt last week, with 1.08 million mt in the Port of Tianjin, up 50,000 mt on a weekly basis, and 900,000 mt in the Port of Qinzhou, also 50,000 mt over the previous week. Some traders held back goods now that manganese ore prices at ports have stopped falling, contributing to the rise in port inventories. Port inventories may continue to grow with more goods arriving in the future.
According to Wang Xiaoqi, Deputy General of China Iron & Steel Association, profits at steel industry in China were RMB 1.3 billion in January, RMB 1 billion in February, RMB 260 million in March and RMB 150 million in April this year. Excess capacity was the major reason behind falling profits in China’s steel industry. In an effort to ease existing high overcapacity, higher requirement will be introduced in the future such as higher environmental protection standards.
Jiangsu Shagang Group and Hebei Iron & Steel Group’s silicomanganese alloy tender prices for June rose RMB 0-100/mt. Hebei Iron & Steel Group may probably raise silicomanganese alloy prices for delivery to factory. Power tariff for rainy season in south China is being gradually implemented. In this context, manganese ore prices at ports will remain stable next week and price rises are expected for those that are in short supply. Manganese ore markets in June should improve compared with May.