Seaborne manganese ore prices to China moved up Friday on tight supply and strong demand.
S&P Global Platts assessed 44% ores up 60 cents week on week at $9.10/dry mt unit CIF Tianjin Friday; while 37% manganese ores rose 30 cents to $8.20/dmtu, CIF Tianjin.
Market participants said demand remained strong. One China-based buyer said he had bought Australian 45-46% material at $9.30-$9.40/dmtu, CIF China. Gabon 44% ore offers were not heard in the market, but sources said it would be $9.10-$9.20/dmtu, CIF China based on Australian ore prices.
Buyers and South African producers reported offers of $8.35-$8.50/dmtu, CIF China for South African 37% ores for January loaded, February delivered material. However, one producer said that if he were to offer for January delivered material, which falls within Platts assessment window of tow to eight weeks delivered material from publication, it would be at $8.20/dmtu, CIF China.
South African producers earlier said they expected tighter supply in January as the country's main port, Port Elizabeth would have its P channel closed for 2 weeks of maintenance, hindering outgoing shipments.
In a tight market, two traders also noted that buyers were starting to look at other manganese producing markets for material. One trader said: "Second-tier manganese producers are ramping up (such as) West Africa, Turkey.
[Buying] sentiment is still strong, port stocks are still low."
China's crude steel output continued to grow in October, rising 4% on year to 68.5 million mt, according to the World Steel Association.
Manganese is required in steel making for hardenability and tensile strength, and is added to crude steel in the form of manganese alloys.
