Spot Manganese Ore Prices Dropped in April on High Market Supply

SHANGHAI, May 16 (SMM) - In April, the monthly average price of Australian lump was 43.92 yuan/mtu, down 5.3% MoM; Gabonese ore 39.14 yuan/mtu, down 7.3% MoM; and South African semi-carbonate ore 33.07 yuan/mtu, down 2.5% MoM. In April, the arrivals, especially Gabonese ore and Australian lump, at Chinese ports increased steadily, which had a negative impact on the spot prices in China. On the demand side, some SiMn alloy companies in north China had to suspend their production due to circuit overhauls in the region, and the ones in the south also maintained low operating rates. These factors resulted in a decline in manganese ore prices.

Entering May, the arrivals of South African ore and Gabonese ore have begun to decline, but the SiMn alloy producers do not increase their purchases amid low SiMn alloy consumption by the steel mills. The manganese ore will still see a supply surplus, so the spot manganese ore prices are likely to drop further.