Manganese ore prices have remained stable during the past week in the local Chinese market. The operating rates of northern manganese ore producers are relatively low compared to producers in the south, as electricity costs are cheaper in southern
China at present. However, the overall inventory situation as regards manganese ore has not changed too much, remaining at high levels. There is no clear signal to show whether the market will enter an upward trend or downward trend. As a result, in the near future manganese ore prices are expected by analysts to follow a stable trend. The mainstream quotations of Australian lump ore with 44 percent Mn content currently stand at $6.85-6.92/dmtu at
China's Tianjin port, while offers of South African origin lump ore of 44 percent Mn content are at $6.62-6.77/dmtu. Also at Tianjin port, quotations for 38 percent grade Mn ore from Australia are in the range of $6.38-6.62/dmtu, while offers of South African lump ore of 38 percent Mn content are at $6.15-6.54/dmtu.
Manganese mines in the areas of Guanxi and Hunan are being reorganized by the local governments. In this context, some of the mines in question have suspended production. However, as inventory still remains at high levels, the impact of these production suspensions has been minimal. Overall downstream demand in
China is still sluggish, and if manganese ore prices are pushed up strongly, downstream manufacturers could decide to suspend their production operations. On the other hand, current manganese ore prices are already close to cost levels, and the majority of mines are at present operating at only half their production capacities. If manganese ore prices fall, the majority of mines will have to stop producing due to lack of profit. Manganese ore prices in
China are unlikely to change in the short term as there is no support for upward movement and as there is very little room for a decline. In the meantime, inventory pressure remains an important factor and the market is still in the process of digesting inventory. Summing up,
China's manganese ore market will continue to remain stable in the coming week.