Brazilian Mn ore is transforming to floating cargoes for sales in china It is reported that, due to an increase of the demand for manganese ore in China, spot price of manganese ore imported into China and stocked at wharves for sales ex warehouse had exceeded the prices settled under yearly contracts for the last 2 years, but this aspect is thought to have at last seen a turning point.
Namely, spot price of manganese ore in China is starting to be lower than basic price fixed under yearly contract. There is a view in the market that price of manganese ore to be settled with Chinese customers for shipments in January to March quarter of 2009 will clearly show a basic tone to fall. It is anticipated that price of manganese ore to be fixed for January to March quarter of 2009 will fall to a level of USD 12 to 13 per Mn 1% CIF China.
The latest prices of manganese ore sold in China on spot base at ex warehouses at wharves by the end of September were Australian lumpy ore with Mn 45% at CNY 136 to 140 per Mn 1%, having still maintained a high level, and Brazilian ore with same grade CNY 105 per Mn 1%, having fallen to a lower level than that settled under yearly contract.
The price of manganese ore with Mn 44% settled with Chinese customers under yearly contracts concluded with a major manganese mine in Australia was USD 16.20 per Mn 1% CIF for shipments in July to September quarter of 2008. This Australian mine proposed Chinese side a small rise of10 of US Cents per Mn 1% for manganese ore to be shipped in October to December quarter of 2008 but many of Chinese customers declined to purchase manganese ore for shipments in this quarter as the proposed price is high. Under the present situation, it is difficult to judge whether the price of manganese ore as offered by Australian mine is the benchmark price to be confirmed or not.
The supply of manganese ore from Australian mine has still maintained a tight position and Australian manganese ore is popular material for Chinese customers. Therefore, the price of Australian manganese ore is still able to keep a high level but part of Brazilian manganese ore, which is hard to use, is not so welcome to Chinese side and, consequently, the price of Brazilian ore is falling.
Nevertheless, major manganese mines of the world have still taken a bullish attitude toward sales of manganese ore for China, and it is supposed that these manganese mines have suggested Chinese customers to skip the contracts.
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