SHANGHAI, Jul. 23 (SMM) –
OM Holdings (OMH) stated its manganese ore output in northern Australia’s Bootu Creek reached 208,000 mt in Q2 and will total 403,000 mt for the full year of 2013. SMM understands that the significant growth in manganese ore output is largely attributable to higher efficiency in transportation. Alloy output at OMH’s Qinzhou smelter was 24,700 mt in Q2 and 46,990 mt in H1, 2013. The first phase of its Sarawak project in Malaysia has been completed by 30.5%, and the project is scheduled to enter operations in Q2, 2014. The project will produce 575,000 mt of alloy per year (including 265,000 mt of manganese alloy and 310,000 mt of iron-silicon alloy) and 300,000 mt of sintered ore.
Manganese Ore Market:
Trading at ports remained sluggish and prices inched down. Sales volumes of Malaysian manganese ore fell back as suppliers and buyers split over pricing. Most traders are holding to the sidelines against falling prices.
In southern ports, mainstream manganese ore gained little favor. In northern ports, a small quantity of non-mainstream manganese ore from Cote d'Ivoire and other countries was traded.
Manganese Alloy Market:
Mainstream quotations of 65/17 silicomanganese alloy were RMB 6,700-6,800/mt (ex-works, excluding tax, by cash) in North China, and RMB 6,600-6,700/mt in South China. 60/14 silicomanganese alloy was quoted at RMB 5,400-5,450/mt (ex-works, excluding tax, by cash) in major producing regions, but traded prices were lower at RMB 5,300-5,400/mt. Some producers are planning to suspend production against lackluster demand. Mainstream offers were RMB 4,600-4,650/mt (ex-works, excluding tax, by cash) for #50 non-standard silicomanganese alloy, RMB 5,100/mt for #55 non-standard silicomanganese alloy, and RMB 5,300/mt for #58 non-standard silicomanganese alloy.
Despite slowing Chinese economy, iron ore and steel prices actually rose. Prices of iron ore, in particular, have risen more than 10% so far this month. Prices of imported iron ore (Fe 62%) climbed from USD 116/mt to USD 129/mt, an increase of 11.2%. Steel prices in China also advanced from RMB 3,390/mt to RMB 3,590/mt, a gain of 5.9%.