SHANGHAI, Nov 16 (SMM) - Manganese ore shipments showed signs of rising with the improvement of downstream demand. The monthly average price of Australian lump was 46 yuan/mtu, up 3.61% MoM; Gabonese ore 42 yuan/mtu, down 1.84% month-on-month; and South African semi-carbonate ore 36 yuan/mtu, up 4.17% on the month. After the National Day holiday, the overall manganese ore prices fluctuated with occasional ups. The further fall of coke prices raised the profit margins of manganese alloy producers. Manganese ore traders who suffered losses were less willing to lower their prices. However, the manganese alloy output grew month-on-month in October, which offered certain support to manganese ore prices.
SMM believes that the overall manganese ore prices may drop in November as the port inventory will be high amid the relatively stable arrivals of overseas manganese ore. The operating rates of manganese alloy producers will be maintained at the current level. Companies in north China will bear certain shipment pressure even though their profits have improved, while those in the south will still suffer losses. In addition, manganese ore about to arrive at ports will be low-priced sources, and the costs of ore traders will be lower. Taken together, the game between buyers and sellers will continue. Downstream companies will offer low purchase prices, and the ore prices will fluctuate with some downward potential amid the high inventory pressure.
