Manganese ore and alloy markets, which normally perform in a positively correlated manner, have been decoupling since October, with prices for manganese ore strengthening whereas those for silico-manganese in China have been falling.
Fastmarkets reviews the main reasons why prices for manganese ore have lost their stickiness to alloy prices in China, the world's largest manganese ore consumer, according to participants in the market as well as Fastmarkets' principal consultant Amy Bennett.
Falling alloy prices, rising ore prices
In China, softening demand from downstream sectors has exerted downward pressure on alloy prices, amid improving supply that had been disrupted by power cuts and carbon-emission restrictions from January until October this year.
Fastmarkets' assessment of
silico-manganese 65% Mn min, max 17% Si, in-whs China has declined by 22% since it peaked at 12,000-12,500 yuan ($1,876-1,954) per tonne on October 8, standing at 9,300-9,800 yuan per tonne on November 5.
At the same time, seaborne manganese ore prices were trending upward with miners continuing to raise their offer prices.
Fastmarkets' manganese ore index 37% Mn, cif Tianjin sped...