SHANGHAI, Mar 16 (SMM) – China silico-manganese futures surged on Monday morning, as concerns about manganese ore supply grew after the major supplier—South Africa announced a raft of measures to slow the spread of coronavirus.
The most active silico-manganese futures on the Zhengzhou Commodity Exchange (ZCE) for May delivery surged more than 3% to its highest in over three weeks at 6,298 yuan/mt in morning trade.
In the physical market, port quotes for manganese ore, meanwhile, barely changed.
In view of the global spread of the COVID-19 pandemic, SA President Cyril Ramaphosa declared national state of disaster and announced a raft of measures, including banning any gathering of more than 100 people, closing schools and banning travels from “high risk” countries.
SA’s containment measures also include shutting 35 of the country’s 53 ports of entry from this week, which is expected to affect supply of manganese ore and chrome ore to China.
SMM data showed that inventories of imported manganese ore, raw material for silico-manganese, ferro-manganese and electrolytic manganese, at Chinese ports stood at 5.63 million mt as of Friday March 13, with South African materials accounting for about 50%. Those inventories are estimated to ensure consumption in China for up to 45 days.
