TEX has reported that the spot price of medium grade manganese ore to be shipped to China has suddenly risen steeply and the current price has reached a level of USD 7 to USD 8 per Mn 1% CIF. It seems certain that the price of manganese ore to be offered by major manganese mines to regular consumers for shipments in October to December will rise by a considerable extent. As a reference, the price of medium grade manganese ore settled with Chinese customers for shipments in July to September quarter is USD 3.50 per Mn 1% CIF.
Some of major manganese mines in South Africa have already sold all their cargoes to be shipped in the October to December quarter. Also, major manganese mines in Australia have already sold out manganese ore for shipments in the July to September quarter. A reduction in the production of manganese ore that began in the October to December quarter of 2008 by major manganese mines has had a substantial effect on the market together with rapidly improved demand and this change of the market position has now come to the surface.
World production of manganese ore decreased by 26% in October to December 2008 and by 54% in the January to March quarter of 2009 in comparison with production reached at its peak. An improvement in the supply and demand of manganese ore has meant a steep rise in price for manganese ore to be imported into China and the spot price of medium grade manganese ore for China during at end of July to the first week of August jumped to a level of USD 7 to USD 8 per Mn 1% CIF, which is compared with USD 5.00 to USD 5.50 per Mn 1% CIF China prevailed in July.
The world output of crude steel in the first half of 2009 was 549 million tons, having decreased by 21% compared with that in the same period of 2008, but the world output of manganese ore in the first half of 2009 had decreased much more than that of crude steel.
Source: Steel Guru
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