Manganese prices keep rising, OMH profit UP, page-117

GLOBAL MANGANESE WRAP: Chinese alloy, ore prices slide while remaining markets hold course
Reports of logistical disruptions in South Africa failed to support manganese ore prices last week with lacklustre demand weighing on Chinese manganese alloys and ore prices, while alloys around the globe stayed flat.

• Manganese ore prices slide as market fails to resume activity following Chinese holidays
• Ore shipments disrupted by extreme weather conditions in South Africa
• EU, US markets maintain course amid limited activity

Manganese ore prices edge down on lacklustre demand
Manganese ore prices were lower on Friday October 20 because of lacklustre demand from China after local governments tightened control on steel mills’ operation rates to improve air quality, as well as higher manganese ore inventory in Chinese main ports.

Activity has barely resumed since the Golden Week holiday at the beginning of the month.

A number of sources expect shipment delays of manganese ore from South Africa due to logistical disruptions. Durban port has been hit by extreme weather and rail services from the Hotazel mining region were halted last week after a train driver was killed in an accident.

“At this stage [the weather-related disruptions] haven’t had an effect [on prices] but the damage done in Durban port could have a knock on effect on Port Elizabeth,” a source at a miner told Metal Bulletin.

“Only Durban has had a problem; it lost 10-15 days’ work so 150,000 tonnes of ore will be shipped with delays,” a second mining source said.

So far, Metal Bulletin has not heard reports of specific shipment delays affecting any one company or customer.

Metal Bulletin’s 44% manganese ore index, cif Tianjin was calculated at $6.47 per dmtu on October 20, down from the previous week’s $6.54.

Meanwhile, Metal Bulletin’s 37% manganese ore index, fob Port Elizabeth dipped five cents to $5.03 per dmtu on October 20, due to a weakening in Chinese alloys prices and the expectation of decreased demand for ore from the steel industry.

“[There is] a lack of new offer prices from South Africa for December deliveries for this week as Chinese market participants’ buying interest is fading,” a manganese ore trader based in Shanghai said.

“South African miners for semi-carbonate ores are waiting for the market to change, but it seems there is no indication the market will improve in the winter, because Chinese steel mills’ operation rates will fall,” the ore trader added.

In the week before last, main Australian miners and **on miners released almost flat offer prices for November deliveries, but “given the yuan’s appreciation from September to October, the flat offers are actually lower when converted to yuan, and Chinese buyers have been quick to accept and book out these offers,” a second major manages trader said.