Chinese Mn ore sales increase; traders pay premiums for small port cargoes amid price risk

Manganese ore sales in Chinese ports have picked up slightly over the past two weeks, compared with large seaborne sales, while traders pay premiums for small clips to avoid significant exposure to price risks.

Traders have been paying premiums of 20-30 cents per dry metric tonne to secure parcels as small as 500-1000 tonnes, on behalf of consumers, rather than buying tens of thousands of tonnes from miners while prices weaken, market sources told Metal Bulletin.
“All the traders I have spoken to this week said their deals are so small; 500-1,000 tonnes,” a manganese supplier told Metal Bulletin.
The practise had created the illusion of an arbitrage between seaborne and port prices, some market participants said.

Such an arbitrage in the past has been used by...

Published

Janie Davies

Ellie Wang

November 27, 2017

18:10 GMT

London