Weak demand and high inventories in Chinese manganese ore market

The Chinese domestic manganese ore market has moved on a downward trend during the past week. The mainstream quotations of Australian lump ore with 46 percent Mn content currently stand at $5.20/dmtu at China's Tianjin port, while offers of lump ore of 48 percent Mn content are at $5.45/dmtu. Also at Tianjin port, quotations for 44 percent grade Mn ore from Gabon are at $5.04/dmtu, while offers of South African lump ore of 38 percent Mn content are at $4.72/dmtu.
 
Overall trading activity is quite low in the local Chinese manganese ore market and prices have declined for most ore grades. With the Spring Festival holiday (Feb. 18-24) drawing closer, traders are trying to sell as much stock as possible and are not willing to build up any stocks for now. Inventories at ports are still at high levels. Downstream alloy producers have mostly halted their production ahead of the holiday, leading to very low demand for manganese ore. For the coming week, it is believed that there is still further room for the downward movement of domestic manganese ore prices in China.