SHANGHAI, Mar 16 (SMM) - Mainstream quotations of imported manganese ore rose sharply in February, especially manganese oxide ore. Among them, the prices of Australia ore increased 9.23% month-on-month (MoM), Gabon ore rose 8.74% MoM, and South Africa semi-carbonate core added 6.20% MoM. SMM believes that manganese ore prices may continue to rise in March, and Australia ore is expected to rise above 65 yuan/mtu in the case of strong demand and low inventory.
In February 2022, the average ex-factory price of spot EMM (major producing areas) dropped slightly by 3.82% MoM to 39,300 yuan/mt. The main reason is that the domestic manganese prices hovered at a high level ahead of the Chinese New Year (CNY), and the terminal sector was suppressed by such high prices. In addition, the overall social inventory was 70,000 to 90,000 mt more than normal level. After the CNY holiday, some manufacturers faced huge cash turnover pressure, and some spot and futures negotiations and transaction prices gradually dropped to around 38,000 yuan/mt. Some spots were even offered at a low of 36,000 yuan/mt by surrendering part of the profits. It is expected that manganese prices will drop significantly in March.
In February 2022, the average ex-factory price of battery-grade manganese sulphate rose slightly by 2.84% MoM to 10,284 yuan/mt, and the purchasing prices of manganese ore at domestic ports also experienced continuous gains. For manganese sulphate manufacturers, in addition to the increase in cost compared with January, the operating rates in February also dropped from a month ago. In other words, falling supply and rising cost are undoubtedly bullish factors for manganese sulphate prices in this March.
