Price Reductions from Major Producers
Manganese ore prices have dropped as Chinese alloy producers scale back production. Major mining companies, such as Eramet Comilog, UMK, and Consolidated Minerals (CML), lowered prices for November shipments. This shift follows a period of price increases earlier this year.
Eramet Comilog reduced its price for 45% Gabonese lumpy manganese ore to $3.95 per metric tonne unit (mtu) in November. This marks a decrease of $1.05 from October. UMK also cut its price for South African 36% lumpy ore to $3.70/mtu, down from $4.60/mtu in September. CML priced its 45% Australian lumpy ore at $4.25/mtu for November, a sharp drop from $9.30/mtu in August. These price adjustments reflect declining demand from alloy producers, who are facing reduced profit margins and lower steel output.
Factors Behind Manganese Ore Price Decline
Several factors drive the drop in manganese ore prices. Chinese alloy producers have reduced output due to narrower profit margins and a slowdown in steel production. In addition, supply chain disruptions, like the halt of South32’s Gemco joint venture in Australia due to Tropical Cyclone Megan, also played a role in tightening high-grade ore supply. Despite these disruptions, weakening demand from Chinese alloy makers has been the main factor causing price drops.
Furthermore, Chinese producers are increasingly sourcing manganese ore from alternative markets, further exerting pressure on global prices. As of October 10, the price for Australian 44-46% lumpy ore in China fell to 42-44 yuan/mtu ($5.93-6.21/mtu). This marks a significant drop from the June price range of 70-73 yuan/mtu.
With declining demand and shifting sourcing patterns, manganese ore prices are expected to face continued volatility.
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