FOCUS: Four key questions about December’s manganese alloy rally

Metal Bulletin answers the key questions surrounding the latest manganese ore rally that has seen prices rise 9% in less than a week.

What’s driving it? Most market participants blame speculation linked to futures trading in China. Manganese ore prices are mainly being driven by soaring silico-manganese futures prices on the Zhengzhou Commodities Exchange. The most traded January contract on the exchange hit 9,098 yuan ($1,374) per tonne on Monday December 11, up from a previous 2017 high of 8,414 yuan per tonne on December 6. The futures rally was initially triggered by the news that some manganese alloy smelters were being ordered to cut production in Ningxia Province. Since then, speculation has taken over and prices have overshot as a result of those still producing alloy raising their prices and...

Published

Janie Davies

Ellie Wang

December 14, 2017

11:46 GMT

Shanghai, London