China's manganese ore market has been following an upward trend in the past week. The mainstream quotations of Australian lump ore with 44 percent Mn content currently stand at $6.84/dmtu at China's Tianjin port, while offers of South African origin lump ore of 44 percent Mn content are at $6.68/dmtu. Also at Tianjin port, quotations for 38 percent grade Mn ore from Australia are in the range of $6.53/dmtu, while offers of South African lump ore of 38 percent Mn content are at $6.37/dmtu.
Australian miner BHP Billiton's increase of US$0.2/dmtu in its manganese ore quotations for February has provided support for further upward movement in China's manganese ore market in the past week. Meanwhile, with manganese alloy production volumes increasing in northern China, scarcity of certain grades of manganese ore has been observed at northern Chinese ports. Manganese alloy purchase prices in China have risen by RMB 50-100/mt, a lower increase than had been expected in the market and this may have a certain negative impact on demand for manganese ore. However, it is believed that China's manganese ore market will maintain its uptrend in the coming period on the back of BHP Billiton's increased quotations.