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SunSirs: Imports of Manganese Ore Increased Sharply, Prices of Silicomanganese Continued to Fall

August 04 2020 08:08:38     SunSirs (John)

Price trend

According to the price monitoring of SunSirs, this month's silicomanganese market has basically shown a downward trend. The current price is basically between 5,950-6,050 RMB/ton, down 400-500 RMB/ton from last month. The current ex-factory price of silicomanganese 6818 in Ningxia is about 6,000 RMB/ton, which is about 150 RMB/ton lower than the price at the beginning of the month. The highest point of the price appeared at the beginning of the month at around 6,400 RMB/ton, and the lowest point appeared at the end of the month, at around 6,000 RMB/ton.

Analysis review

Silicomanganese steel bidding prices plummeted in July

The final price of Hegang's silicomanganese bidding in July was 6,500 RMB/ton for the acceptance price including tax, which was 100 RMB/ton higher than the first round of inquiry, and 1,000 RMB/ton lower than the June procurement price. Extraction volume: 27,780 tons, an increase of 780 tons from June 2020 and 1780 tons year-on-year.

Southern Steel Plant took the lead in the August bidding and learned from market news: Guangxi Guigang Iron and Steel's purchase price of silicomanganese was set at 5,990 RMB/ton, with cash included tax to the plant; Guangxi Longsheng silicomanganese 6517 was set at 6,100 RMB/ton, with cash to the factory including tax; Yangchunxin Iron and Steel's silicomanganese bidding price is set at 6,250 RMB/ton, and is accepted to the factory including tax; East China CITIC Pacific’s August price of silicomanganese 6517 is set at 6,190-6,350 RMB/ton, and is accepted to the factory including tax.

In June, silicomanganese production rose and inventories remained high

In July, there were 121 production enterprises in silicomanganese production areas, and the national comprehensive operating rate in July was 55.2%, an increase of 3.1% from June. The national production capacity in July was 1,544,698 tons, and the output was 803,355 tons, an increase of 2.37% from June and an increase of 18,635 tons from June.

 

According to statistics, the national silicomanganese inventory at the end of this month was 227,450 tons, and the inventory at the end of June was 203,250 tons, an increase of 24,200 tons from the previous month, and it remained at a high level.

In addition, at the end of the month, the Ministry of Ecology and Environmental Protection issued a document stating that the air quality in Ningxia is not up to standard and that the Pingluo area of Ningxia will curtail electricity for alloy companies. The market has different opinions on this. Some factories said they had received notifications, while others said they had not received news.

Manganese ore imports increase

At present, the price of manganese ore has basically returned to the previous position. In terms of inventory, the port manganese ore inventory was basically in a slow destocking trend from February to June. In mid-to-late June, the inventory rebounded. Both Qinzhou Port and Caofeidian manganese ore inventory were above 1 million tons. , Tianjin Port is more than 3 million tons, and the current port manganese ore inventory has once again risen to more than 5 million tons, and the manganese market is in a state of falling easily but not rising.

In June, China’s manganese ore imports amounted to approximately 2,183,100 tons, a sharp increase of 39.26% from the month-on-month imports (1.5677 million tons), while imports in June last year (2.0343 million tons) increased by 7.32%; the first half of this year (from January to June) ) China’s total import volume of manganese ore is about 12.817 million tons, which is 18.40% lower than the import volume in the first half of last year (15.7079 million tons). South Africa’s export volume was reduced due to the closure of the country from March to April due to the epidemic. This is the main factor influencing the decline in China’s import volume in the first half of the year. However, normal mining operations began to resume in June and the import volume gradually recovered. Data show that China in June Imported 724,800 tons of manganese ore from South Africa, an increase of 24.37% from the previous month.

Take Kangmilo's manganese ore futures quotations in the first half of the year as an example. The two rounds of quotations in July and August have fallen sharply. Under the premise of maintaining normal production and delivery in the main manganese ore producing areas, the manganese market will remain weak.

South Africa's UMK company announced its quotation for China manganese ore in September 2020. The price of Mn36% South African manganese semicarbonate (lump ore) was 3.8 US dollars/mtu (CIF China main port).

South32 announced its September shipment quotation for China Manganese Ore. The high-grade Australian block was reported at 4.2 US dollars/mtu, which was a decrease of 0.41 US dollars/mtu from August; the high-grade Australian seed was 3.98 US dollars/mtu, which was a decrease of 0.39 US dollars/mtu from August In terms of temperature, South African semi-carbonic acid was 3.8 US dollars/mtu, which was a decrease of 0.4 US dollars/mtu from August.

In September 2020, Comilao offered Mn44.5% Gabonese ore to China Manganese Mine at 3.98 US dollars/mtu, and Mn43% seed ore at 3.73 US dollars/mtu, which was the same as in August.

Market outlook

On the whole, the current market demand situation is general, and most of them are in a wait-and-see situation. The price of raw manganese ore is loose and some enterprises are under heavy financial pressure. At present, the start of construction in the north has not changed much. Major factories still have some stocks, some manufacturers are seriously upside down, and their willingness to sell is low, and the maintenance and shutdown plans may be advanced. In view of the dual pressures of inventory and cost, some steel mills in the south took the lead in bidding, and the prices were all lowered. The pessimism was strong. SunSirs’ analysis believes that the price of silicomanganese may continue to decline slightly.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.

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