China's manganese ore prices soften, sales dull

Chinese prices of manganese ore continued to soften this week due to dull sales in the physical market, with that of South Africa-origin 36.5% grade Mn ore at North China's Tianjin port under Mysteel's assessment reaching Yuan 31.1/dmtu ($4.3/dmtu) including the 13% VAT as of June 13, down another Yuan 0.1/dmtu on week.

Transactions of manganese ore in the physical market remained poor as silicomanganese smelters were unwilling to purchase high-priced manganese ore, given their shrinking profit margins with the continuous fall in SiMn prices, according to a market source in Shanghai.

As of June 13, the national price of 6517 SiMn was assessed by Mysteel at Yuan 6,577/t including the 13% VAT, losing Yuan 39/t from one week before and refreshing the lowest since December 29 2020.

Besides, the SiMn bidding prices tabled by major Chinese steelmakers for June deliveries were below market expectations, aggravating the negative sentiment in the domestic market and persuading SiMn smelters to lower their procurement prices of feed raw materials including manganese ore, Mysteel Global learned.

Mysteel's survey showed that Hebei Iron and Steel Group (HBIS), a major steel producer in North China's Hebei province, has confirmed its buying price of this ferroalloy at Yuan 6,880/t for deliveries this month. This is lower by Yuan 270/t from May, though some Yuan 30/t higher than its initial inquiry price tabled earlier.

"Some lower bidding prices (of steel mills) have emerged in the market, dragging down the spot SiMn prices and putting more pressure on manganese ore prices," the Shanghai-based market source said.

However, China's manganese ore prices could still gain some support from the cost side, as domestic traders' import costs have stayed high due to the depreciation of the Yuan against the US dollar, even though major overseas mines cut their offering prices slightly for July shipments to China, Mysteel Global noted.

Eramet Comilog, a major manganese ore exporter from Central Africa's Gabon, has clipped its 44.5% Mn content manganese lump ore by $0.08/dmtu on month to $4.57/dmtu CIF China for July shipments, according to Mysteel's survey.

Total inventories of manganese ore at China's major ports had declined for a fourth week to 6.19 million tonnes as of June 9, lower by another 13,000 tonnes on week and hitting the lowest since April, Mysteel's latest weekly survey showed.

Note: This article has been written in accordance with an article exchange agreement between Mysteel Global and SteelMint.