Seaborne manganese ore prices to China saw no respite Friday seeing further gains on the week.
S&P Global Platts assessed 44% ores up week on week at $8.50/dry mt unit CIF Tianjin, up from $8.20/dmtu; while 37% manganese ores moved up to $7.90/dmtu, CIF Tianjin up 40 cents on the week.
Market participants said manganese prices were being talked about all over the place and higher prices were no surprise. A Chinese trader source said although there were concerns over the acceptance of higher prices, there was continuing support for seaborne manganese ore as port prices were at $11/dmtu for Australian 46% ore.
A second Chinese trader said he would be in the market to buy: "Prices will stay high in near term, so no choice. It is restocking season now, so Chinese demand is still strong."
Sources agreed offers for 44% ore from Gabon were being made at $8.50/dmtu and Australian origin 46% ore at $9/dmtu CIF China December loading. Semi-carbonated ore was being offered as high at $8.10/dmtu same basis.
Concern over the sustainability of prices, after seeing a steep increase in offers remained through the market. One seller said he was not sure Chinese buyers would be able to continue to absorb high prices unless similar increases were seen in manganese alloy and steel prices.
"We've seen iron ore and coking coal prices come off so this is madness," he said.
A Chinese consumer source said with port stocks still higher than seaborne offers he would be forced to buy material and accept higher prices.
Indian manganese ore producers said offers for Australian 46% manganese ore were at $9.20/dmtu CIF India.
"It's too high, the price has to see a big correction. It can't go on," one alloys producer said.
