Market Participants Generally Believe Manganese Ore Prices Will Be Flat in June

SHANGHAI, Jun 16 (SMM) - For the price outlook of manganese ore in June, most market participants believe that the prices would be flat despite divergent views. 14% of the participants are bullish on the prices in June. At present, the inventory of manganese ore is relatively low, and ores to be arrived at ports in June are mostly semi-carbonate ore. At the same time, the electricity prices in Guangxi have been reduced, hence the operating rates of manganese alloys will increase, potentially generating more demand for manganese ore. In addition, the low-priced sources have almost been depleted, pushed up the cost of spot goods. Therefore, manganese ore prices are likely to rise slightly amid cost support and bullish demand outlook.

51% of the participants said that the current market is relatively mixed, and the overseas quotations post great differences. Although some varieties test the highs, downstream manganese alloy factories are less willing to accept high prices due to unfavourable profit. So the market is still in the tug-of-war, making it difficult for ore prices to rise or fall.

13% of the participants are bearish on ore prices. First of all, except for semi-carbonate ore, the prices of other varieties have dropped again. Although the RMB exchange rate has risen, the cost of oxidation ore has dropped compared with that in April (high quotations and low exchange rate). Therefore, when the downstream manganese alloy enterprises adjust the ratio of manganese ore due to poor profits, the ore prices may correct.

The remaining 22% are unsure about the market outlook.