SHANGHAI, Jul. 29 (SMM) –

Review:
Prices of mainstream manganese ore at ports edged down last week, while prices for non-mainstream manganese ore showed no signs of stopping falling. Some traders are awaiting BHP’s August quotations of Australian manganese ore after the company announced its August quotations for South African mixed carbonate manganese ore.

Prices:
In the Port of Tianjin, the mainstream traded price for Australian manganese ore (Mn48%, lump) was RMB 41.5-42/mtu; RMB 34.5-35/mtu for South African mixed carbonate manganese ore (Mn38%, lump), and RMB 38/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 42-43/mtu. Mainstream traded prices were RMB 38-38.5/mtu for South African high-iron manganese ore (Mn35-36%, Fe20%); RMB 34.5-35.5/mtu for South African mixed carbonate manganese ore (Mn38%, lump), and RMB 39/mtu for Australian high-silicon manganese ore (Mn36%, Si20%).

Inventories:
Inventories at ports were 2.5 million mt last week, with 1.43 million mt in the Port of Tianjin, up 80,000 mt on a weekly basis, and 850,000 mt in the Port of Qinzhou, down 100,000 mt from the previous week. A large quantity of manganese ore will arrive in August, which will weigh manganese ore prices down further.

Steel Market:
Domestic steel prices largely rose. Shares of steel companies soared thanks to the State Council’s call for further investments in railway construction in Mid-west China and poverty-stricken areas. The Ministry of Industry & Information Technology (MIIT) recently underscored industrial restructuring, technical upgrade, M&As and elimination of outdated capacity in steel, aluminum, cement, plate glass and shipbuilding sectors, also giving a boost to shares of steel companies. However, the recent price rise in steel will slow down given the tightening liquidity at the month’s end.   

Forecast:
SMM expects manganese ore prices at ports to hold largely stable in the coming week.