China Manganese Ore Market Movement (2013-6-19)-Shanghai Metals Market

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China Manganese Ore Market Movement (2013-6-19)

Price Review & Forecast 06:19:42PM Jun 19, 2013 Source:SMM

SHANGHAI, Jun. 19 (SMM) –

Domestic Market:
Prices of imported manganese ore at ports fell further, with trading volumes lackluster. SMM survey found that many manganese alloy producers in south and north have suspended production and those remaining in operations have cut production. Some chose to sell manganese ore bought earlier instead of using it for production. They mainly sell manganese ore (lump) from Australia, South Africa and Gabon. Alloy producers hold offers level with or higher than market prices. 

Manganese Alloy Market:
Most alloy producers have limited high-carbon ferromanganese alloy inventories at hand. Silicomanganese and ferromanganese alloy producers produce only to meet demand from steel plants in June. Ferroalloy bid prices from steel mills rose due to low inventories at steel plants, but only slightly. Meanwhile, preferential electricity price has not yet been implemented in some parts of China, so production costs at alloy producers remain high. The result is that only a small number of alloy producers resumed production.

Transactions:
In southern ports, sales volumes of South African mixed carbonate manganese ore were relatively higher, but downstream producers are not optimistic over prices for this category of ore. Therefore, there is still room for it to drop further.

Steel News:
China Iron & Steel Association estimated average daily crude steel output across China at 2.16 million mt in early June and 64.69 million mt throughout June. The National Development & Reform Commission (NDRC) has urged crackdown on illegal capacity in steel, cement, sheet glass and shipbuilding sectors. Illegal projects in these industries will not be approved and no support in terms of land use, environmental assessment and credit will be given.   

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

Origin

Grade

Jun. 19 Price

(RMB/mtu)

Jun. 18 Price

(RMB/mtu)

Price Change

Region

Notes

 

Australia (lump)

Mn47-48%

45

45-45.5

↓0.25

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

37.5-38.5

↓0.25

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 (2013-6-19)

Price Review & Forecast 06:19:42PM Jun 19, 2013 Source:SMM

SHANGHAI, Jun. 19 (SMM) –

Domestic Market:
Prices of imported manganese ore at ports fell further, with trading volumes lackluster. SMM survey found that many manganese alloy producers in south and north have suspended production and those remaining in operations have cut production. Some chose to sell manganese ore bought earlier instead of using it for production. They mainly sell manganese ore (lump) from Australia, South Africa and Gabon. Alloy producers hold offers level with or higher than market prices. 

Manganese Alloy Market:
Most alloy producers have limited high-carbon ferromanganese alloy inventories at hand. Silicomanganese and ferromanganese alloy producers produce only to meet demand from steel plants in June. Ferroalloy bid prices from steel mills rose due to low inventories at steel plants, but only slightly. Meanwhile, preferential electricity price has not yet been implemented in some parts of China, so production costs at alloy producers remain high. The result is that only a small number of alloy producers resumed production.

Transactions:
In southern ports, sales volumes of South African mixed carbonate manganese ore were relatively higher, but downstream producers are not optimistic over prices for this category of ore. Therefore, there is still room for it to drop further.

Steel News:
China Iron & Steel Association estimated average daily crude steel output across China at 2.16 million mt in early June and 64.69 million mt throughout June. The National Development & Reform Commission (NDRC) has urged crackdown on illegal capacity in steel, cement, sheet glass and shipbuilding sectors. Illegal projects in these industries will not be approved and no support in terms of land use, environmental assessment and credit will be given.   

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

Origin

Grade

Jun. 19 Price

(RMB/mtu)

Jun. 18 Price

(RMB/mtu)

Price Change

Region

Notes

 

Australia (lump)

Mn47-48%

45

45-45.5

↓0.25

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

37.5-38.5

↓0.25

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.