South Africa is a mineral rich country. It is the second largest in the world after China to be the reserve base for Manganese Ore in both the global production and its export. The country holds a total of 80% of global reserves and 34% of which contains manganese. South Africa’s manganese fields are capable of giving the manganese ore to the world for next 100 years or so.
Recently local sources from the South African manganese ore market said that demand for manganese ore from Chinese market has decreased. Slow demand leads to a very thin trade in the market, which might consequently lower the prices of manganese ore in the market in the near future.
At present the price for South African manganese ore 38% min. is same as last week and is between USD 4.00-4.10/dmtu FOB South Africa. The same was being quoted by a manganese ore trader based in South Africa who deals with more than 10,000 MT of manganese every month. The trader expects a price decline in the near future owing to the slow Chinese demand for steel and manganese alloys.
The source further said that, “We can all see that the Chinese economy is slowing down and hence the steel consumption. Steel production is down and drives manganese alloys production down as well. Therefore it is almost unavoidable that manganese ore price will move down in the near future.” He had sold 2,000- MT of manganese ore 38% min, Fe 18% max, at USD4.95/dmtu CFR in the Chinese market last week.
Another South African trader of manganese ore also quoted the same price in the international market and sold around 5,000 MT of manganese in the market. He too agreed with the probability of price decline of manganese ore prices in the market in the near future. “All fundamentals are suggesting that prices for manganese ore should come down, I feel that prices can drop USD0.20-0.30/dmtu in July, especially with the expectations of even weaker rand,” the source remarked.