WEEKLY: China Silico Manganese Price Rebounds as Manganese ore Firms

Chinese Silico Manganese (SiMn) prices recovered a little lost ground on the day as of November 15, an unexpected change after prices of the Ferro Alloy had been in almost constant decline since July, according to Mysteel's latest weekly survey over November 11-15. The price was still lower on the week, however, with the on-day recovery seen as driven mainly by higher prices of imported manganese ore rather than reflecting any lift in demand.

On November 15, the price for 65-17 grade SiMn in North China reversed up by a tiny Yuan 50/MT (USD7.1/MT) on day to Yuan 5,775/MT EXW and including the 13% VAT, though the price was still Yuan 225/MT lower than at the same time the previous week. The 65-17 grade price is regarded as a key reference price in China's SiMn market, Mysteel Global understands.

The uptick in the SiMn price followed the rise of imported manganese ore prices at Chinese ports, a market insider in Shanghai explained.

"Many major traders of imported manganese ore refused to sell their products at ports and since early last week, they have lifted their offer prices because their previous prices for ore were below their cost line," he said. "Most of the ores at the ports belong to big traders, as many small traders left the business after six months of low prices. This also encouraged the large traders to raise their prices," he added.

Mysteel's price index of South Africa-origin 36.5% grade manganese ore at North China's Tianjin port was at Yuan 32/mtu as of November 15, higher by a slight Yuan 0.6/mtu or 1.9% compared with that on November 8.

Moreover, South32, the world's top manganese ore miner headquartered in Perth, Western Australia, last week announced that it was maintaining its offering price for December supplies to China - a decision which also supported prices of imported manganese ore, the Shanghai source added. South32's Australia-origin 45.5% grade manganese ore lump price remains unchanged on month at $3.9/dmtu CIF China, Mysteel's survey showed.

An official with a Tianjin-based trading firm in North China agreed that the higher Mn ore prices, and South32's decision to roll over for December, had bolstered the SiMn market, and acknowledged that his firm had ratcheted up offer prices from last Tuesday. "But the current price was still too low for us to win any margin," he complained.

For the immediate future, prices of SiMn and imported manganese ore will be heavily influenced by the next bidding price tabled by domestic steel mills at the beginning of December, the trader said.

This article has been published under an article exchange agreement between Mysteel Global & SteelMint Research