Positive sentiment boosts China's manganese ore prices

Chinese prices of manganese ore stayed firm over the past week thanks to positive sentiment in the domestic market, with the price of South Africa-origin 36.5% grade Mn ore at North China's Tianjin port under Mysteel's assessment reaching Yuan 31.2/dmtu ($4.3/dmtu) including the 13% VAT as of August 8, gaining Yuan 0.4/dmtu from one week before.
Domestic manganese ore traders tried to lift their offering prices this week, as the recovery in silicomanganese (SiMn) prices had improved the profit margins of smelters and encouraged them to keep their production steady, Mysteel Global learned.

China's SiMn prices in the physical and futures markets strengthened over the past week, with the national price of 6517 SiMn under Mysteel's assessment growing to Yuan 6,588/t including the 13% VAT as of August 8, rising by Yuan 68/t from one week before.

On the same day, the most-traded SiMn contract on the Zhengzhou Futures Exchange for October delivery closed the daytime trading session at Yuan 6,830/t, up Yuan 46/t from the settlement price on August 1, according to the exchange's data.

In parallel, the higher prices being bid by steelmakers for August deliveries helped lift SiMn prices, giving domestic manganese ore traders some confidence to raise their offering prices accordingly. Low-priced manganese ore products remain hard to find in the domestic market, sources noted.

On Tuesday, the SiMn bidding price tabled by Hebei Iron and Steel Group, a major steel producer in North China's Hebei province, was finally confirmed at Yuan 6,900/t for delivery in August, up Yuan 200/t on month, or higher by Yuan 100/t from its first-round inquiry price, according to Mysteel's survey.

Mysteel's latest weekly survey showed that inventories of manganese ore at China's major ports totalled 5.81 million tonnes as of August 4, edging up 47,000 tonnes or 0.8% on week after the drop during the prior week. However, the volume at the ports stayed at a relatively low level, which also lent support to domestic manganese ore prices to some extent, Mysteel Global noted.

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