Falling port inventories may support Chinese manganese ore prices

Chinese prices of manganese ore recovered slightly over the past week thanks to an improvement in market sentiment, with the price of South Africa-origin 36.5% grade Mn ore at North China's Tianjin port under Mysteel's assessment reaching Yuan 31.3/dmtu ($4.4/dmtu) including the 13% VAT as of May 30, gaining Yuan 0.3/dmtu from one week before.
Domestic traders tried to lift their offering prices of this ore to ease the losses they're suffering, as their costs when buying the ore at hand have stayed relatively high.

Besides, Mn ore consumption among manganese alloy smelters remains stable, given their increased production, and this is causing ore inventories at China's major ports to decline further. The reduction in stocks is also helping to give domestic market sentiment a lift, Mysteel Global learned.

As of May 26, total inventories of manganese ore at the major ports covered in Mysteel's weekly surveys had touched a two-month low of 6.28 million tonnes, down for the second week by another 175,000 tonnes or 2.7% on week.

However, Chinese silicomanganese prices have continued to ease during the past week, which also placed some pressure on manganese ore prices and limited any further rise.

For example, the national price of 6517 SiMn was assessed by Mysteel at Yuan 6,721/tonne including the 13% VAT as of May 30, a new low since April 23 2021 after an on-week fall of Yuan 76/t.

In parallel, major overseas mines have decided to trim their offering prices of Mn ore further for shipments in July, which may also dampen confidence in the domestic market, Mysteel Global noted.

South32, the world's top manganese ore miner headquartered in Perth, Western Australia, has cut its offering price for 45% grade Australian manganese lump ore for shipments in July by $0.1/dmtu on month to $4.9/dmtu CIF China, according to Mysteel's survey.

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