The manganese ore market held up well, with high-grade ore showing a significant upward trend. [SMM Manganese Ore Daily Review]

December 2 news:

North China ports: South African high-iron ore at 29.6-30.1 yuan/mtu, flat WoW; South African semi-carbonate ore at 34.1-34.8 yuan/mtu, flat WoW; Gabonese lumps at 41.2-42 yuan/mtu, up 3.23% WoW; Australian lumps at 40-41.4 yuan/mtu, up 1.73% WoW; South African medium-iron ore at 35.9-36.4 yuan/mtu, up 1.40% WoW.

South China ports: South African high-iron ore at 30.8-31.3 yuan/mtu, flat WoW; South African semi-carbonate ore at 36.9-37.8 yuan/mtu, flat WoW; Gabonese lumps at 40.6-41.5 yuan/mtu, flat WoW; Australian lumps at 40.5-41.2 yuan/mtu, up 0.49% WoW; South African medium-iron ore at 37.6-38.1 yuan/mtu, up 0.80% WoW.

At the beginning of the week, the manganese ore market continued its previous firm trend, with varied performance across different grades.

Supply side, due to railway operation issues in Gabon, Comilog has lowered its Q4 manganese ore shipment plan, and subsequent port arrivals of Gabonese ore will significantly decrease; recent port arrivals of Australian lumps have also continued to decline. Supply of the two mainstream high-grade ore sources is struggling to match current market demand, revealing a supply-demand gap. Traders hold strong bullish expectations for future manganese ore, especially high-grade oxide ore, and widely adopt a "hold back cargoes" strategy, keeping offers firm.

Demand side, differentiated purchase needs from downstream SiMn enterprises further amplified the price increase of high-grade ore. Driven by bullish market sentiment, SiMn plants showed high enthusiasm for purchasing scarce resources like Australian lumps and Gabonese lumps at the start of the week, pushing up transaction prices for these ores. Recent commissioning of new capacity in northern main production areas strongly supports rigid demand for manganese ore; meanwhile, the southern SiMn market maintains low operating rates, with enterprises mainly purchasing as needed, providing some buffer to overall market demand.

Inventory side, reduced port arrivals of high-grade oxide ore at Tianjin Port in the north led to a destocking trend; at Qinzhou Port in the south, high-grade oxide ore sources are scarce, making it difficult for plants to find manganese ore. Destocking of medium- and low-grade manganese ore and South African resources proceeded slowly, and combined with some port arrivals for restocking, the overall market showed an inventory buildup trend over the past weekend.

Overall, current port inventories of high-grade lump ore are tightening overall, and downstream buyers face increasing difficulty in negotiating prices. In the short term, Gabonese ore and Australian ore, supported by both supply contraction and demand uptake, still have potential for further price increases. The manganese ore market is expected to hold up well in the near term.