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The strength of US manganese prices

Why are US manganese prices remaining firm, and will they stay that way?

<<  North American Ferroalloys Conference


The latest Manganese wrap shows the strength of ferro-manganese prices in the US.

At last year's international Ferroalloys Conference we sat down with Hal Kohn from Minerais to discuss these prices, and where he thought they would be heading.

Was he right? View the video and wrap below to compare.


GLOBAL MANGANESE WRAP

Published June 19, 2017

Low stocks support US prices

In the USA, the ferro-manganese market maintained its strength, taking support from current inventory shortfalls.

US spot prices for high-carbon ferro-manganese held firmly at $1,440-1,500 per long ton in warehouse Pittsburgh on June 15, flat week-on-week, according to Metal Bulletin sister publication AMM’s latest assessment.

Mill and traders alike have been scrambling for material, as many have found themselves short.

"There is still some evidence of a significant shortfall in high-carbon ferro-manganese," a supplier source told AMM.

"I’ve had calls from several different steel mills and traders this week looking for tonnage ranging from several hundred tonnes to over 1,000 [tonnes]," the source added.

"This market has been very firm. Numerous mills and traders are still seeking units for the third quarter, and they aren’t having an easy time doing so," a second supplier source said to AMM.

As mills have been seeking additional material for the third quarter and second half, sources noted a more guarded approach taken by the mills as they seek to mask the shortfalls.

"Mills are trying to avoid causing any sense of urgency or price spike that may stem from them being shorter than previously believed," a third supplier source said.

However, the market is aware of their situation, the second supplier source added.

"There has definitely been some behind-the-scenes work by the mills trying to cover up shortfalls, but the word is out at this point," the second supplier source said.

US spot prices for silico-manganese – for which supply is not as tight as ferro-manganese – edged down slightly to 63-66 cents per lb on June 15, down from 63-67 cents per lb previously, according to AMM’s latest assessment.

"We aren’t exactly swimming in inventory at the moment, but it just isn’t quite as tight as ferro-manganese," a supplier source said to AMM.

US silico-manganese prices have been at a healthy premium to the global markets in recent months, leaving the door open to new market entrants, sources said.

"We are seeing more material coming from places like Russia and Malaysia, given the wide price spread on US silico-manganese," a third supplier source said.

"That is going to inevitably lead to some price correction back towards the global markets," he added.

As multiple mills have open requests for quotation at this time, market participants expect to have a more concrete direction on pricing over the second half of June.

 

This article was first published at https://www.metalbulletin.com/Article/3726235/GLOBAL-MANGANESE-WRAP-Seaborne-high-grade-ore-prices-up-as-port-low-grade-prices-lose-ground.html

 

Contributors:

Rena Gu - rena.gu@metalbulletinasia.com

Janie Davies - jdavies@metalbulletin.com

Fleur Ritzema - fritzema@metalbulletin.com

Chris Kavanagh - Christopher.kavanagh@amm.com

This content is provided by AMM Events for informational purposes only, and it reflects the market and industry conditions and presenter’s opinions and affiliations available at the time of the presentation.