GEMCO shutdown

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Jupiter Mines Limited (ASX:JMS)

Issue date: 04 Apr

Major manganese producer raises prices. Effective April 1st, India's largest manganese ore producer MOIL Ltd (MOIL) increased its Mn ore prices by 6% for high-grade ore (>44%Mn) and by 3% for medium -grade (Mn <44%). MOIL produces about 1.3Mtpa Mn ore.

Concerns from China buyers as stocks reduce. According to the London Commodity Intelligence Bureau (LCIB), the action by MOIL was a response to increased domestic and international buyers' concerns over the GEMCO Groote Eylandt shutdown, especially from China. That country's Mn ore stock levels continued to fall last week, the tight Mn supply countering the sluggish domestic steel demand.

RSA prices flat, but expect gradual rise over coming weeks. Feedback both from Jupiter Mines Limited (ASX:JMS) management and the LCIB suggests the reflection of the GEMCO shutdown in rising weekly benchmark RSA prices (eg 37% FOB) will be gradual, with a more pronounced impact to be seen in about a month when shipments sailing then from RSA will reflect prices negotiated today. LICB expects 37% Mn RSA FOB to increase from current level of US$3.06/dmtu to US$3.31/dmtu in July 2024.

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LICB expects Mn price to increase from $3.06 to $3.31 by July