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| Brazilian Mn-Ore Is Transforming To Floating Cargoes For Sales In China |
| = For Cargoes To Arrive Soon In China, Mn-Ore Market In China Comes To Turning Point |
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Owing 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 (quantity contract on yearly base to fix price on quarterly base) 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 - 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 - March quarter of 2009 will fall to a level of US$12 - 13 per Mn 1% CIF China. The latest prices of manganese ore sold in China on spot base (ex. warehouses at wharves) by the end of September were <> Australian lumpy ore with Mn 45% : at CNY136 - 140 (US$18.23 - 18.82) per Mn 1% , having still maintained a high level, and <> Brazilian ore with same grade : CNY105 (US$15.44) 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 US$16.20 per Mn 1% CIF for shipments in July - September quarter of 2008. This Australian mine proposed Chinese side a small rise (10 US-Cents per Mn 1%) for manganese ore to be shipped in October - 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. The market of manganese ore in China is now going to change quickly and one of the characteristics is to shift the purchases of manganese ore to select the origins. 30,000 tons of Brazilian manganese ore is due to arrive in China on a late part of October but the cargoes are so far unable to find out its buyers. It is marked to see an issue of Brazilian manganese ore, having placed on floating state, but it is wondered whether it is still possible to sell the cargoes of Brazilian manganese ore with a bullish attitude as taken in July - September quarter or not. At all events, the sales of manganese ore for China are thought to have faced a turning point. 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. |
| last modified : Wed 22 Oct, 2008 [10:49] |
