SMM Manganese Ore Weekly Price Review and Forecast (Oct. 21-25, 2013)

SHANGHAI, Oct. 21 (SMM) – 

Review:
Offers of Australian manganese ore (lump) in south China were cut by RMB 0.5/mtu due to growing supply. Prices of high-iron manganese ore from South Africa, in contrast, were hiked by RMB 0.5/mtu thanks to higher import costs and tight supply. Quotations for other classes of manganese ore remained little changed. Operating rates at manganese alloy producers in south China are falling as power tariffs in some regions have risen, eating into manganese ore demand. This also tightened supply of silicomanganese alloy, so producers are considering raising offers. However, steel market remains weak, leaving little room for a rise in silicomanganese alloy prices.

Prices:
In the Port of Tianjin, mainstream traded prices for Australian manganese ore (Mn48%, lump) were RMB 41-41.5/mtu; RMB 34.5-35/mtu for South African mixed carbonate manganese ore (Mn38%, lump), RMB 38.5-39/mtu for South African high-iron manganese ore (Mn35-36%, Fe18%), and RMB 37/mtu for Brazilian manganese ore (Mn45%Fe5%) . In southern ports, the mainstream quotations for Australian manganese ore (Mn48%, lump) were RMB 40.5-41/mtu. Mainstream traded prices were RMB 38.5-39/mtu for South African high-iron manganese ore (Mn35-36%, Fe20%); RMB 34-34.5/mtu for South African mixed carbonate manganese ore (Mn38%, lump), RMB 39.5/mtu for Australian high-silicon manganese ore (Mn36%, Si20%), and RMB 37/mtu for Brazilian manganese ore (Mn45%Fe5%, lump).

Inventories:
Manganese ore inventories at ports edged down to 2.6 million mt last week. Inventories were 1.59 million mt in the Port of Tianjin, 750,000 mt in the Port of Qinzhou, 160,000 mt in the Port of Lianyungang, 160,000 mt in the Port of Zhanjiang, and 450,000 mt in the Port of Fangchenggang. Manganese ore from South Africa and Australia took a lion’s share of inventories at ports. 

Overseas News:
Gabon government estimated October 14 that the country’s manganese ore output will reach 4.59 million mt by 2014, up 14.8% from 4 million mt in 2013. Manganese ore prices will rise by 2.5%, driven by robust global demand.

Forecast:
Manganese ore prices will remain little changed this coming week. Suppliers will be little interested in quoting, while downstream producers will show little intention of purchasing, either, leaving trading lackluster.