SMM Survey Shows Most Market Participants Believe Imported Manganese Ore Prices Will Be Flat MoM in August

SHANGHAI, Aug 17 (SMM) - Prices of different manganese ores dropped one after another in July. The monthly average price of Australian lump was 57 yuan/mtu, down 7.3% MoM, that of Gabonese lump stood at 54 yuan/mtu, a month-on-month decrease of 6.4%, and that of South African semi-carbonate ore stood at 39 yuan/mtu, down 9.1% on the month. Quotes of spot manganese alloy dropped under pressure due to the weaker terminal demand. Meanwhile, manganese alloy plants’ purchasing cycle of raw materials shortened because of the wild fluctuation of raw material prices, which further affected the shipment rhythm of ores. And some market participants reduced their prices to promote the sales amid the financial pressure.

Most market participants believe that the prices of imported manganese ore in August will be flat.

12% of them are bullish. At present, the ore prices have basically dropped to the bottom, and ore traders who suffer losses are less willing to lower the prices again. Moreover, the operating rates of manganese alloy plants are rising.

59% of the participants hold the view that the prices will probably stay unchanged as the ore prices have already experienced a one-month-long drop even though the costs of manganese ore arriving at ports in forward months decline. In addition, the downstream manganese alloy plants are not active in restocking raw materials amid the weak terminal demand, and they are more intend to lower the ore prices. However, manganese ore traders will not allow the prices to keep dropping amid their losses.

7% of the participants hold a bearish outlook on the prices. On one hand, the port inventory of manganese ore is high. On the other hand, although the traders are reluctant to reduce the prices at present, those who enter the market late and bear huge pressure from the high inventory may allow some low-priced goods in the market.

The remaining 22% are unsure about the market outlook.