Prices for manganese ore delivered to China jumped 12%-15% week on week Friday, on the back of prevailing strong Chinese demand, as concerns over falling supplies continued.
Platts assessed its weekly 44% manganese ore price at $2.90/dmtu CIF Tianjin on Friday, up from $2.60/dmtu last week. The assessment for 37% manganese ore stood at $2.70/dmtu, up from a $2.35/dmtu, same basis.
Market talk is that Australian 44%-46% lumps are currently being offered at $3-$3.05/dmtu for April shipments, CIF China basis, with Australian fines heard quoted around $2.80/dmtu, multiple market participants agreed Friday.
No offers were heard for Gabon 44% ores on Friday, while quotes for South African ores were pegged around $2.80-$3.00/dmtu for April-May shipments, sources added.
"It's madness now, and prices are still on the rise ... there are very limited stocks around and the Chinese are scrambling to buy. We heard South Africa's UMK has no more April stocks and may soon start offering May shipments at above $3.00/dmtu, so anything is possible," a Shaanxi consumer source said.
"We also heard there's not much Australian April stocks left, and Gabon is not available either, so consumers have no choice, they have to pay higher if they want to buy now," a Shandong consumer added.
Rising spot manganese ore prices at China's Tianjin port, falling spot stock levels at the port, and a strong rebound in iron ore prices this week also supported the overall manganese ore market, sources said.
Spot manganese ore prices at Tianjin port skyrocketed this week, with Australian 44%-46% grade lumps heard trading at Yuan 43-45/dmtu ($6.60-$6.90/dmtu) Friday, up from Yuan 36-38/dmtu last week, and from Yuan 20/dmtu at the start of February.
Spot prices for Gabon 44% grade and South African 37%-38% grades were both pegged trading around Yuan 38-40/dmtu at the port this week. Gabon ore prices were heard around Yuan 34-35/dmtu a week ago and at Yuan 27-28/dmtu two weeks back.
No offers or trades were heard for South African ores last week, with trades last heard done around Yuan 27-27.50/dmtu two weeks ago.
"Prices are rising at the port every day, and it's mainly because stocks are falling, and buyers are rushing in as a result," another Shandong consumer source said.
Reduced supply of South African ores due to mine cutbacks in recent months also contributed to the concerns and added support to prices. Manganese ore stocks at Tianjin port is estimated at around 800,000-900,000 mt currently, down from close to 2 million mt at the end of 2015, sources said.
Meanwhile, an Indian consumer said Friday that he also expects higher prices for April-May shipments, but "we've not heard any offers to India this week ... China is willing to pay high, so not many will offer to India now."
