FOCUS: Five questions about manganese ore positioning

Fresh reports are emerging of traders taking positions in the manganese ore market, sparking reminders of speculation-led rallies that occurred in previous years.

Position trading refers to buying up larger than normal cargoes of manganese ore on expectations of making profit from a resultant price rise. It is a tactic that has not been seen for some time because opportunities have been limited due to high prices and the fact that the majority of stock in Chinese ports had been held by end users for some time.
Fastmarkets answers five questions about the latest round of positioning, and examines how market conditions have changed.
Who is taking positions?
“A combination of newcomers and old guard,” a market source said.

No names have been mentioned so far but sources believe some of the entities that profited from earlier squeezes have been waiting for the right time to repeat their tactics and have started to buy again. Still, established players are likely to proceed cautiously...


Janie Davies

Jon Stibbs

January 30, 2019

15:29 GMT