Generally, manganese ore market price tended to be steady in 2009, and foreign suppliers no longer dominated the market, as demand by downstream industry has been the main concern of the ore sellers.

 

Status of manganese ore supply has been changing quietly. Most major suppliers of manganese ore cut production and sharply adjusted down quoted price. As market demand recovers slowly, they kept on adjusting their strategy, especially saw quarterly pricing system abandoned. Also, ores from Southeast Asia and other areas of Africa have gained more of China’s market during the past year.

 

China’s manganese ore import was somewhat astonishing this year, as the import volume was at very low level in the first quarter and recovered soon in the second, and, during the second half of the year it kept flying as high as over 1million tons a month! The record of monthly import volume was broke several times and the total import volume approached 9 million tons. While market demand has never fully recovered yet, the rapid increase in import volume indeed impressed analysts.

 

Slipping market price of imported manganese ore finally hit the bottom by June 2009 and then began to rebound. During the past year, market price of imported manganese ore in China’s ports only changed within RMB35/mtu, which is rather a slight gap compared with the former years. It is predicted that the price would continue to increase slowly in 2010.

 

Downstream market of manganese ores was generally stable in 2009, with good performance domestically, thanks to positive policies, but gloomy situation in export market due to the influence by financial crisis. China’s export volume of manganese alloys dropped sharply in 2009, and the situation is expected to continue next year, as high production cost and high custom tariffs have not been changed.

 

As for 2010 market, we shall make a brief analysis as follow. Firstly, domestic policies on ferroalloys and manganese alloys would be intensified again, which may bring difficulties on minor plants of manganese ore miners and also users. Secondly, supplement of imported manganese ore would be more complicated because of more severe market competition not only between importers and users, but also oversea miners and ore suppliers. Thirdly, market demand is assured as China’s steel and ferroalloy industry would continue develop positively, but structure of the industry and the market will keep adjusting. For example, the relationship between spots and futures, the changing in China’s stocks in ports and plants, etc.

 

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Editor: Jasper

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