Manganese prices little changed following Eramet cuts
Last week, Eramet announced it will suspend production at its Moanda mine in Gabon for at least the next three weeks due to weak market conditions.
“That had a small impact on pricing, but as you know, sentiment changes like the wind,” said a South African producer. “Cutting sales would have been better as you are taking material out of the market. Unless production is closely linked to actual sales, and they have no real buffer stock, then impact will filter through down the line.”
On Friday, high-grade manganese ore was assessed at $3.94/dmtu CIF Tianjin, up marginally from $3.91/dmtu CIF in the previous week.
Semi-carbonate prices edged up to $3.70/dmtu CIF Tianjin, from $3.69/dmtu CIF in the previous week. On an FOB basis, semi-carbonate prices were unchanged on the week at $2.94/dmtu FOB Port Elizabeth.
“The oversupply (problem) will not change immediately in my opinion,” said another manganese producer. “There is about 6 mt of stock at Chinese ports, so my view is that supply from South Africa (and more from Eramet) must reduce before we see prices recover again.”
While Eramet continues to export, traders think that constant derailments on their railway line may disturb their momentum.
Last week, Setrag (Eramet’s rail operator) experienced a small derailment of 18 manganese wagons that was cleared after two days. “They are quick to repair but are not doing everything to ensure a repeat,” one trader said.
This week, around 204,000 t of manganese is expected to be exported from South Africa’s port of Port Elizabeth, down from 233,000 t.
In India, a few offers for high-grade material were heard at around $4.05-4.10/dmtu, but no confirmed deals.
Offers for semi-carbonate grades of 36% content were heard at $3.80-3.90/dmtu CIF Vizag, while those for 32-34% content was heard at around $3.65/dmtu.
“Prices will likely move in a narrow range in the coming days, as several producers of ferroalloys in India are not yet keen on re-starting their plants, as export demand continues to remain weak,” said an official of a leading producer.