Price Of Mn-Ore For Shipments To China In Q3 / 08 Rises By US$4 Per Mn 1% = Australian Ore, A Rise Of Price For Mn-Ore Continues In Every Quarter From Beginning Of 2008 The negotiations with major producers of ferro-alloys in China on price of manganese ore for shipments in July - September quarter of 2008 are not finalized yet but are in the direction to be settled by a rise of more than US$4 per Mn 1% in comparison with that fixed for the preceding quarter of April - June.
The price of manganese ore for shipments to regular consumers of China in April - June quarter of 2008 has been settled at US$12.20 per Mn 1% CIF China (price settlement on quarterly base) for Australian ore and, in comparison with this price level, the ore price for July - September quarter is anticipated to be settled by a rise of more than US$4 per Mn 1%. For a reference, the standard quality of manganese ore to be imported from overseas sources into China is silicious ore, containing 44% of Mn.
The prices of manganese ore fixed with regular consumers of China for shipments in January - March quarter of 2008 were in the range of US$9.90 - 10.0 per Mn 1% CIF, which had risen by US$2.70 - 2.90 per Mn 1% compared with those for the preceding quarter of October - December of 2007. Under the present situation which the price of manganese ore to be shipped to China in July - September quarter is in the direction to have a considerable rise, a rise of price for manganese ore to be shipped to China is thought to be materialized for the successive 3 quarters.
The background is that, since China has been expanding their steel production to a substantial extent, the demand for manganese ferro-alloys from domestic market and the production of ferro-alloys in China are considerably increasing. In addition to the fact that, prior to the Beijing Olympic Games to be held in August of this year, Chinese steel mills have been purchasing in advance raw materials to avoid the anticipated traffic jam, the Central Government of China are asking Chinese mills to increase their steel production as a national policy in order to cope with the temporary demand for steel products to be used for restoration from the large earthquake occurred on the 12th of May in Sichuan province.
Under the circumstances, in order to expand steel production in China, the demand for manganese ore from China is increasing and spot contracts on imports of manganese ore into China for shipments in April - June quarter have been concluded at higher prices of US$17 - 18 per Mn 1% CIF.
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