China Manganese Ore Market Movement (2013-6-27)-Shanghai Metals Market

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China Manganese Ore Market Movement (2013-6-27)

Price Review & Forecast 01:50:49PM Jun 27, 2013 Source:SMM

SHANGHAI, Jun. 27 (SMM) –

Steel News:
Hebei Iron & Steel Group will integrate its trade and mining investment projects in Hong Kong, Singapore and South Africa in preparation for its IPO on the Hong Kong Stock Exchange. The group has now raised USD 1.2 billion overseas for financing. Lingyuan Iron & Steel stated yesterday that it received RMB 350 million in fiscal subsidies from Chaoyang Fiscal Bureau on June 25, 2013, with RMB 150 million for subsidies in technological R&D and the remaining RMB 200 million for subsidized loans. SMM understands that growing fixed-asset investment in transportation sector in May and a 25.5% growth in railway infrastructure construction during January-May will boost demand for steel products.     

Manganese Ore Market:
Prices of imported manganese ore at ports continued to fall, with South African mixed carbonate manganese ore leading losses. Manganese ore CIF quotations to Chinese importers and alloy tender prices from steel mills are still uncertain at the moment. If CIF prices are cut, manganese ore prices at ports will slid further. As such, SMM believes CIF prices will likely be hiked. If steel producers continue to push for lower manganese alloy prices, many alloy producers will cut or halt production. Given the low alloy stocks at steel plants, it will be difficult for them to source raw materials if they lower alloy tender prices. For small and medium traders, the more the imported goods they possess, the greater the risks. For large traders, however, more cargos will allow them to gain more power in price negotiation in the future.

Transactions:
In southern ports, Malaysian manganese ore and South African mixed carbonate manganese ore continued to gain favor, but prices fell further.

Manganese Alloy Market:
Wuhan Iron & Steel will purchase 4,500 mt of silicomanganese alloy in July. The procurement price is RMB 7,200/mt (by acceptance, including tax, for delivery to factory), flat with June. The company issued tenders twice in June, with tender price at RMB 7,100/mt (by acceptance, including tax, for delivery to factory) and RMB 7,200/mt (by acceptance, including tax, for delivery to factory), respectively. SMM believes the rise in tender price is a sign of low alloy stocks at steel producers.

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

Origin

Grade

Jun. 27 Price

(RMB/mtu)

Jun. 26 Price

(RMB/mtu)

Price Change

Region

Notes

 

Australia (lump)

Mn47-48%

45

45

Tianjin port

 

 

Mn47-48%

44

44

Qinzhou port, Zhanjiang Port

 

South Africa (mixed carbonate manganese ore, lump)

Mn38% Fe5%

37

37

Tianjin port, Lianyungang

 

 

Mn38% Fe5%

37-37.5

37-37.5

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 (2013-6-27)

Price Review & Forecast 01:50:49PM Jun 27, 2013 Source:SMM

SHANGHAI, Jun. 27 (SMM) –

Steel News:
Hebei Iron & Steel Group will integrate its trade and mining investment projects in Hong Kong, Singapore and South Africa in preparation for its IPO on the Hong Kong Stock Exchange. The group has now raised USD 1.2 billion overseas for financing. Lingyuan Iron & Steel stated yesterday that it received RMB 350 million in fiscal subsidies from Chaoyang Fiscal Bureau on June 25, 2013, with RMB 150 million for subsidies in technological R&D and the remaining RMB 200 million for subsidized loans. SMM understands that growing fixed-asset investment in transportation sector in May and a 25.5% growth in railway infrastructure construction during January-May will boost demand for steel products.     

Manganese Ore Market:
Prices of imported manganese ore at ports continued to fall, with South African mixed carbonate manganese ore leading losses. Manganese ore CIF quotations to Chinese importers and alloy tender prices from steel mills are still uncertain at the moment. If CIF prices are cut, manganese ore prices at ports will slid further. As such, SMM believes CIF prices will likely be hiked. If steel producers continue to push for lower manganese alloy prices, many alloy producers will cut or halt production. Given the low alloy stocks at steel plants, it will be difficult for them to source raw materials if they lower alloy tender prices. For small and medium traders, the more the imported goods they possess, the greater the risks. For large traders, however, more cargos will allow them to gain more power in price negotiation in the future.

Transactions:
In southern ports, Malaysian manganese ore and South African mixed carbonate manganese ore continued to gain favor, but prices fell further.

Manganese Alloy Market:
Wuhan Iron & Steel will purchase 4,500 mt of silicomanganese alloy in July. The procurement price is RMB 7,200/mt (by acceptance, including tax, for delivery to factory), flat with June. The company issued tenders twice in June, with tender price at RMB 7,100/mt (by acceptance, including tax, for delivery to factory) and RMB 7,200/mt (by acceptance, including tax, for delivery to factory), respectively. SMM believes the rise in tender price is a sign of low alloy stocks at steel producers.

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

Origin

Grade

Jun. 27 Price

(RMB/mtu)

Jun. 26 Price

(RMB/mtu)

Price Change

Region

Notes

 

Australia (lump)

Mn47-48%

45

45

Tianjin port

 

 

Mn47-48%

44

44

Qinzhou port, Zhanjiang Port

 

South Africa (mixed carbonate manganese ore, lump)

Mn38% Fe5%

37

37

Tianjin port, Lianyungang

 

 

Mn38% Fe5%

37-37.5

37-37.5

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.