SMM Review of September Manganese Market and Its Prospect

SHANGHAI, Oct 20 (SMM) - The prices of semi-carbonate manganese ore rose slightly in September, while those of manganese oxide ore remained relatively stable. The monthly average price of Australia manganese ore lumps dropped 6.3% month-on-month to 45 yuan/mtu, that of Gabon manganese ore fell 6.5% month-on-month to 43 yuan/mtu, and that of South Africa semi-carbonate manganese ore lost 2.9% month-on-month to 34 yuan/mtu. The prices of semi-carbonate manganese ore slipped from 35.75 yuan/mtu to 33 yuan/mtu in August, but climbed from 33 yuan/mtu to 35.5 yuan/mtu in September, driven by tight inventory and downstream stocking ahead of the National Day holiday. High inventory prevented the prices of manganese oxide ore from going up.

China produced 41,900 mt of EMM in September, down 20.83% MoM and 60.19% YoY, according to SMM statistics. The combined output in January-September totalled 557,300 mt, down 35.03% YoY. According to SMM research, due to the high domestic manganese prices, the demand from stainless steel sector continued to be sluggish. Orders of EMM mainly came from special steel and alloy sector. In this scenario, the overall demand was weak, and the market transactions were in a stalemate. Under this circumstance, a large-sized manganese factory, which accounted for more than 50% of market share in China, suspended for environmental protection-oriented maintenance. Therefore, although some manganese factories resumed the production in September, the output still declined.

While destocking in the battery-grade manganese sulphate market accelerated in September, its supply remained relatively plentiful. The monthly average spot price of battery-grade manganese sulphate stood at 6,464 yuan/mt in September, down 0.03% MoM. China's battery-grade manganese sulphate output stood at 23,800 mt in September, an increase of 4.39% MoM. Most of the manganese sulphate factories saw an improvement in their delivery of long-term orders in September.