As the quantity of ferroalloys produced in China is unable to increase, there is a continuous fall in price for imported manganese ore imported by China. Some manganese mines have been facing the difficulty for sales of low grade manganese ore with Mn 40% max., which is produced and supplied by Malaysia and Indonesia amongst others.
In order to hold down these growing countries, major manganese mines have adopted the strategy to offer medium grade manganese ore with Mn 44% to 45% for China at a price level of USD 5.00 per Mn 1% CIF for shipments in the first half of 2009. A fall to USD 3.00 per Mn 1% has not been ruled out.
The spot price of low grade manganese ore with Mn 40% max for China has already fallen to a level of USD 3.50 per Mn 1% CIF China for South African ore and the same grade produced in Cote d'Ivoire has been quoted at less than USD 4.00 per Mn 1% CIF. Some Chinese producers of manganese ferroalloys have aimed to purchase low grade manganese ore at a lower price than USD 3.00 per Mn 1% CIF.
China imported 632,000 tons of manganese ores in the first 2 months of 2009, a decrease of 41.5% compared with the same period of 2008. Some manganese mines offered medium grade lumpy manganese ore with Mn 44% at USD 16.20 to USD 16.30 per Mn 1% CIF China for shipments in the October to December quarter of 2008 and as a result the imports of manganese ore from such major sources as South Africa, Australia, Brazil and Gabon into China have decreased to a large extent.
The quantities of manganese ore imported from main sources into China in January to February of 2009 were from Australia 96,000 tons, from Brazil 49,000 tonnes, from Gabon 111,000 tonnes and from South Africa 116,000 tonnes.
On the other hand, the quantities of low grade manganese ore imported from growing countries into China in January to February of 2009 were from Malaysia 71,000 tonnes and from Indonesia 25,000 tonnes having shown a substantial increase. The cost price of low grade manganese ore produced in these growing countries is estimated to be higher than USD 5.00 per Mn 1% but, according to the customs statistics released in China, the unit prices of low grade ore imported from these growing countries into China were on a level of USD 3.00 to 4.00 per Mn 1% CIF.
In view of the fact that spot price of medium grade manganese ore with Mn 44% to 45% in January to March quarter of 2007 was on a level of USD 3.00 per Mn 1%, it is anticipated to return to this price level in an unexpectedly earlier time, due to a sharp decrease in Chinese ferroalloy production.
Source: Steel Prices India
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