China: Silico Manganese Prices Approaching Bottom
...
In the Chinese Silico Manganese market most manufacturers in the northern region offered in a range of RMB 7,200-7,300/MT (USD 1,069-1,084/MT)for 65-17 grade, while the southern region offered at an approximate rate of RMB 7,400 /MT (USD 1,099/MT). It shows that the price of Silico Manganese 65-17 grade today remained weaker than that of the previous trading day. At present, prices in Henan, Hebei, Shandong, and Jiangsu Provinces is mostly at RMB 7,475-7,731/MT (USD 1,110-1,148/MT), delivered, cash, tax inclusive.
In the futures market, today's Silico manganese futures contract 1905 is active. It opened at RMB 7,452/MT (USD1,106/MT), the highest reached to RMB 7,462/MT(USD1,108/MT), the lowest was at RMB 7,360/MT(USD1,092/MT), closing at RMB 7,360/MT(USD1,092/MT), and the settlement price is at RMB 7,404/MT(USD 1,099/MT), a drop of 84 points. The positions held are 13,672 lots, a daily decrease of 2,314 lots. Near the delivery month, the trend is seen to remain weak in the last few days.
The Silico Manganese contract 1909 is not that active. Today's development indicates that the downward trend has not finished yet, but the overall decline recently is notable, and it is getting closer to the bottom.
The current Silico Manganese market maintains slight adjustments at low positions. Meanwhile, the news that there will be power cuts in Inner Mongolia still remains unclear and the market trend can only be estimated after further observation. At present, the profit made by the producers is meager or negative. However, the lower levels of inventory may benefit the market in a later period for price development.
Manganese Ore Market:
SteelMint learned that UMK announced the offer for shipment of manganese ore to China in June 2019, with the South Africa Mn36% lumps reported at USD 6.34/dmtu; South Africa Mn 36% fines reported at USD 5.67/ton, which is unchanged as compared to the previous month.
| Month | Mine | Ore Type | Grade | Offer(USD/dmtu) | Remarks |
| Jun,2019 | UMK | SA Semi-Carbonate lumpy Mn Ore | Mn36% | 6.34 (->) | CIF |
| Jun,2019 | UMK | SA Semi-Carbonate Mn Ore fines | Mn36% | 5.67 (->) | CIF |
| May,2019 | UMK | SA Semi-Carbonate lumpy Mn Ore | Mn36% | 6.34 | CIF |
| May,2019 | UMK | SA Semi-Carbonate Mn Ore Fines | Mn36% | 5.67 | CIF |
In the present scenario, the Ore importers are under pressure as UMK laid flat offers for June. According to informed sources, there is no actual transaction at this price, and the persistent decline in price has sent most traders into a loss state. Meanwhile, the stock is piling up at ports and the inventory is high, which is increasing difficulty for sales in a buyer's market. Today, the prices for lumps of Australia and Gabon fell once again by RMB 1/dmtu (USD 0.15/dmtu). Specifically, the Australia lumpy Mn ore at Tianjin port is reported at RMB 54.5/dmtu (USD 8.09/dmtu), semi-carbonate Mn ore at RMB 47.5/dmtu (USD 7.05/dmtu), Gabon lumps at RMB 53/dmtu (USD 7.87/dmtu); As for Qinzhou port , the mainstream Australia lumps is reported at RMB 55.5/dmtu (USD 8.24/dmtu), semi-carbonate at RMB 47/dmtu(USD 6.98/dmtu), Gabon ore at RMB 53/dmtu (USD 7.87/dmtu).
On the future outlook, the Silico Manganese market development is still determined by supply and demand dynamics. There is no news from the leading Steel mills about their May tenders, which has led to discreet operation on traders' side and tepid transactions. Market atmosphere seems under pressure and is cautious with pessimistic outlook on May tenders. However, the prices of Silico Manganese may remain weak in the near future.
