Tex reports that the prices of manganese ore contracted to import into China have continued to fall. The price of lumpy manganese ore with Mn 44% - the main grade to be required by China - has been contracted for shipments in May to June at a price level of USD 3.50 to USD 3.80 per Mn 1% CIF.
While one of major manganese mines in South Africa has already offered lumpy manganese ore with Mn 44% at a discounted price of USD 3.80 per Mn % CIF China for shipments in May to June, another mine recently offered manganese ore with the same grade at USD 3.50 per Mn 1% CIF and accordingly, the price level of this manganese ore is now moving to USD 3.50.
The recent prices of lumpy manganese ore with Mn 44% discharged at main ports of China in the first week of May have maintained the levels of USD 4.50 to USD 4.80 per Mn 1% CIF for Australian ore, Brazilian ore and Gabonese ore.
In comparison with prices of USD 5.50 to USD 5.65 per Mn 1% CIF China which major manganese mines proposed in February, prices of manganese ores actually imported into China in May have had a considerable fall of 65% and with this weakened market the spot price of manganese ore fell heavily for shipments in April onwards.
Taking into account the period of voyage, cargoes of manganese ore discharged at the main ports of China in early May are assumed to be those contracted in March to April and, at that time, the prices of manganese ore were on a level of USD 4.50 to 4.80 per Mn 1% CIF. Prices for shipment in May to June have fallen further.
With prices continuing to fall, the price of manganese ore with Mn 44% may hit a level of USD 3.00 per Mn 1% CIF China, which was the spot price prevailing in Q1 2007. There is a view in the market that the price of manganese ore will thereafter bottom out. The reason is that, when price of manganese ore has fallen to a level of USD 3.00 per Mn 1% CIF China, medium and small manganese mines in China, which will be able to supply 1,500,000 to 2,000,000 tons per annum in total, are driven out of the market.
Source: Steel Guru
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