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Mn Ore Price for China as February Shipment Tends to Get Weakened
= Offer price for medium-grade ore is down by 5 - 8% from prior month =
The respective manganese mine companies have begun to offer the price for February shipment since entering the second week of January, of which multiple mine companies are understood to have offered the lower prices than January shipment.

South32 has not made clear its offer price for Australian manganese ore lump with Mn being 46% which many of the market participants take as a benchmark, but United Manganese Karahari (UMK) and Asia Minerals Limited (AML) have already offered the prices for South African medium-grade manganese ore (Mn being around 37%) as February shipment at US$7.50 per lb. Both companies' prices are down by 5 -8% from January shipment.

The reasons why the price of manganese ore which continued rising from last September onward dropped back are (1) The demand for manganese-containing ferroalloys and manganese metal gets decreased at the moment due to Chinese New Year holidays from 27th of this month, (2) Port stock of imported manganese ore in China is ample like being 2.2 - 2.4 million tons, (3) The retail price in the Chinese domestic market began to drop back last December, and the import trading firms begin to show reluctance to buy at a high price and (4) It is a likely case that the manganese mines which ceased operation last year will restart operation, and also some people are saying that it marked the beginning of the price dropping back that the major manganese mine sold its unsold ores out of January shipment at a reduced price.

From now, not only the customers in China but also the entire manganese industry are focusing on what prices South32 and Eramet Comilog which handle high-grade ores will offer.

On the one hand, the rainy season has come in the inland of South Africa, and the storm rainfall caused problems in the Hotazel region where multiple manganese mines are located. This week, UMK declared force majeure because of flooding. Besides, the shipping capacity at the port of Elizabeth as a main shipping port for manganese ore has yet to make an enough recovery after the troubles occurred last June and there has been a continuing bottleneck, which some of the market participants point out will have a likelihood of becoming a brake on price declining mood.
last modified : Wed 18 Jan, 2017 [10:45]
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