China Manganese Ore Market Movement (2013-6-17)-Shanghai Metals Market

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China Manganese Ore Market Movement (2013-6-17)

Price Review & Forecast 02:01:15PM Jun 17, 2013 Source:SMM

SHANGHAI, Jun. 17 (SMM) –

Iron Ore:  
The draft regarding the launch of iron ore futures contracts by Dalian Commodity Exchange (DCE) has been approved by the China Securities Regulatory Commission, indicating iron ore futures contracts will probably be launched this year. It was reported that the DCE cooperated with the Industry Department of the National Development & Reform Commission in the second half of last year in on the study of the impact of iron ore futures contracts on China’s steel industry. The study highlights the positive influence of futures markets on industrial development and urges the introduction of iron ore futures as soon as possible. The DCE will adopt physical delivery method for its iron ore futures contracts. As China is the only country in the world that has iron ore spot trading, derivatives in international markets are settled based on the CIF prices of iron ore in China’s northern ports. 

Domestic Market:
Quotations of imported manganese ore at ports were essentially unchanged on Monday. Traded volumes this past weekend were sluggish. Prices of South African mixed carbonate manganese ore (Mn35-38%) were under great downward pressure due to ample supply and falling CIF prices. Some market players expect South African mixed carbonate manganese ore (Mn35%) to slip to RMB 34/mtu. However, SMM understands that prices of South African mixed carbonate manganese ore (Mn35%) will not fall to RMB 33.5-34/mtu unless CIF prices drop at a faster pace and silicomanganese alloy markets in China continue to deteriorate. SMM expects prices of South African mixed carbonate manganese ore (Mn35%) to hold stable at RMB 35-35.5/mtu for the near future.

Transactions:
In northern ports, South African mixed carbonate manganese ore (lump) and Australian ore (lump, Mn46%) were more popular. In southern ports, sales volumes of Brazilian ore grew appreciably. 

Prices of imported manganese ore are shown in the table below:

Origin

Grade

Jun. 17 Price

(RMB/mtu)

Jun. 14 Price

(RMB/mtu)

Price Change

Region

Notes

 

Australia (lump)

Mn47-48%

45-45.5

45-45.5

Tianjin port

 

 

Mn47-48%

44-44.5

44-44.5

Qinzhou port, Zhanjiang Port

 

South Africa (mixed carbonate manganese ore, lump)

Mn38% Fe5%

37.5-38

37.5-38

Tianjin port, Lianyungang

 

 

Mn38% Fe5%

37.5-38.5

37.5-38.5

Qinzhou port, Fangchenggang

 

Brazil (lump)

Mn44-45%

40-41

40-41

Qinzhou port, Zhanjiang Port

 

 

Mn44-45%

41-42.5

41-42.5

Tianjin port, Lianyungang

 

Malaysia (lump)

Mn33% Fe10%

30-31

30-31

Tianjin port

 

 

Mn33% Fe10%

31-31.5

31-31.5

Zhanjiang Port, Qinzhou port

 

Notes: prices in the table refer to mainstream traded prices.

 
 

China Manganese Ore Market Movement (2013-6-17)

Price Review & Forecast 02:01:15PM Jun 17, 2013 Source:SMM

SHANGHAI, Jun. 17 (SMM) –

Iron Ore:  
The draft regarding the launch of iron ore futures contracts by Dalian Commodity Exchange (DCE) has been approved by the China Securities Regulatory Commission, indicating iron ore futures contracts will probably be launched this year. It was reported that the DCE cooperated with the Industry Department of the National Development & Reform Commission in the second half of last year in on the study of the impact of iron ore futures contracts on China’s steel industry. The study highlights the positive influence of futures markets on industrial development and urges the introduction of iron ore futures as soon as possible. The DCE will adopt physical delivery method for its iron ore futures contracts. As China is the only country in the world that has iron ore spot trading, derivatives in international markets are settled based on the CIF prices of iron ore in China’s northern ports. 

Domestic Market:
Quotations of imported manganese ore at ports were essentially unchanged on Monday. Traded volumes this past weekend were sluggish. Prices of South African mixed carbonate manganese ore (Mn35-38%) were under great downward pressure due to ample supply and falling CIF prices. Some market players expect South African mixed carbonate manganese ore (Mn35%) to slip to RMB 34/mtu. However, SMM understands that prices of South African mixed carbonate manganese ore (Mn35%) will not fall to RMB 33.5-34/mtu unless CIF prices drop at a faster pace and silicomanganese alloy markets in China continue to deteriorate. SMM expects prices of South African mixed carbonate manganese ore (Mn35%) to hold stable at RMB 35-35.5/mtu for the near future.

Transactions:
In northern ports, South African mixed carbonate manganese ore (lump) and Australian ore (lump, Mn46%) were more popular. In southern ports, sales volumes of Brazilian ore grew appreciably. 

Prices of imported manganese ore are shown in the table below:

Origin

Grade

Jun. 17 Price

(RMB/mtu)

Jun. 14 Price

(RMB/mtu)

Price Change

Region

Notes

 

Australia (lump)

Mn47-48%

45-45.5

45-45.5

Tianjin port

 

 

Mn47-48%

44-44.5

44-44.5

Qinzhou port, Zhanjiang Port

 

South Africa (mixed carbonate manganese ore, lump)

Mn38% Fe5%

37.5-38

37.5-38

Tianjin port, Lianyungang

 

 

Mn38% Fe5%

37.5-38.5

37.5-38.5

Qinzhou port, Fangchenggang

 

Brazil (lump)

Mn44-45%

40-41

40-41

Qinzhou port, Zhanjiang Port

 

 

Mn44-45%

41-42.5

41-42.5

Tianjin port, Lianyungang

 

Malaysia (lump)

Mn33% Fe10%

30-31

30-31

Tianjin port

 

 

Mn33% Fe10%

31-31.5

31-31.5

Zhanjiang Port, Qinzhou port

 

Notes: prices in the table refer to mainstream traded prices.