Soaring freight rates eat into manganese ore suppliers' margins

Manganese ore miners and traders have been surprised by an accelerating rise in freight rates that is eroding their margins, amid increased demand for vessels and competition for freight space from other commodities.

Freight rates have been rising steadily since December but have risen by at least 20% in the past week, according to the latest freight quotes heard by Fastmarkets.
In the week to February 18, manganese ore market participants reported freight rates as high as $39 per tonne from Port Elizabeth in South Africa to China for single-port discharge, and $52 per tonne for dual-port discharge.

For producers of 37% manganese ore in South Africa, this would translate to freight prices as high as $1.05-1.06 per dry...

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