[SMM Manganese Ore Weekly Review] High-Grade Ore Shows Significant Gains, Manganese Ore Prices Remain at High Levels

December 5 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 41.7-42.5 yuan/mtu, up 2.43% WoW; Australian lumps at 41-41.7 yuan/mtu, up 2.48% WoW; South African medium-iron ore at 36.6-37.1 yuan/mtu, up 3.37% 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, flat WoW.

At the beginning of the week, the manganese ore market continued its previous firm trend, with varied performance across different grades. High-grade manganese ore transaction prices saw particularly notable increases, presenting an overall market pattern of "high-grade leading the gains, while low-grade fluctuates at lows."

Supply side, due to railway operation issues in Gabon, Compagnie Minière de l'Ogooué (Comilog) has lowered its Q4 manganese ore shipment plan, leading to a significant reduction in future port arrivals of Gabonese ore. Recent port arrivals of Australian lumps have also continued to decrease. Supply of the two major mainstream high-grade ore sources is struggling to match current market demand, and a supply-demand gap is gradually emerging. Traders hold strong expectations for future price increases, especially for high-grade manganese oxide ore, widely adopting a strategy of holding back cargoes, keeping offers firm.

Demand side, differentiated purchase demand from downstream SiMn enterprises has further amplified the price increases for high-grade ore. Driven by bullish market sentiment, SiMn plants showed high purchasing enthusiasm for scarce resources like Australian lumps and Gabonese lumps at the start of the week, pushing up their transaction prices. In the main northern production areas, new capacity has been successively put into operation recently, providing strong support for rigid manganese ore demand. The southern SiMn market maintains a relatively low operating rate, with enterprises purchasing mainly based on immediate needs, providing some cushioning effect on overall market demand.

Overall, current port inventories of high-grade lump ore are generally tightening, with market bargaining power tilting towards sellers, making purchasing negotiations increasingly difficult. The manganese ore market is expected to maintain a pattern of holding up well in the short term, with the trend of high-grade ore leading the gains likely to continue.