TELF AG Report on China’s Manganese Ore Market: Challenges and Price Trends – July 22, 2023
Pricing dynamics
The global manganese ore market has been witnessing fluctuations due to a variety of factors, and China, being a major player in this industry, is no exception. This article delves into the recent developments in China’s manganese ore sector, focusing on the pricing dynamics and market sentiment surrounding both manganese ore and electrolytic manganese metal (EMM). As traders and exporters navigate through uncertain waters, domestic mills’ purchasing decisions are also impacting the overall market sentiment.
Steady Prices Amidst High Costs:
China’s port manganese ore prices have shown little change, despite the reduction in July alloy tenders from major local mills. Traders have been cautious in altering their offers due to persistently high costs. This situation has been further exacerbated by a limited number of traders willing to make significant cuts. As a result, the market has experienced minimal fluctuations in pricing.
Increased Inquiries After SiMn Tender Prices Fixation:
Recent developments in the manganese ore market have led to increased inquiries from traders. This surge in interest came after Hesteel finalized its July tender prices for Silicomanganese (SiMn). The fixation of these tender prices has provided some clarity, and traders are now looking to align their strategies accordingly.
Weak Performance of China’s EMM Market:
China’s Electrolytic Manganese Metal (EMM) market has faced challenges, primarily marked by a prolonged period of weak performance. Both traders and exporters have been compelled to cut their offers to stimulate sales and alleviate the burden of mounting stock. The situation has been further compounded by domestic mills slashing their tender prices during the July purchasing period, exerting additional pressure on the spot market.
Faltering Market Sentiment:
Despite talks of production cuts aimed at reviving market sentiment, the impact has been limited. The EMM market continues to struggle with an overall bearish outlook, adversely affecting demand. As a result, the export market for China’s EMM has remained weak.
In conclusion, China’s manganese ore market is grappling with challenges that have dampened market sentiment. Persistently high costs have deterred traders from making significant adjustments to their offers, contributing to a relatively stable pricing environment. The fixation of July tender prices for SiMn has generated increased inquiries, providing some hope for a clearer market direction.
However, the EMM market has experienced continued weakness, as traders and exporters resort to price cuts in an attempt to stimulate sales and reduce stock pressure. Domestic mills’ decision to lower tender prices has only added to the prevailing market challenges.
As the industry navigates through uncertain times, it remains crucial for stakeholders to monitor global demand patterns and implement strategies to address the prevailing bearish outlook. The future of China’s manganese ore market depends on the industry’s ability to adapt and find innovative solutions to the challenges at hand.
