Manganese ore stocks in Chinese ports stand at 3.85-3.93 million tonnes, according to Fastmarkets’ latest assessment, after they rose to 4.09-4.18 million tonnes early in June - their highest since the assessment was launched in 2017.
Real availability is tighter than it appears because traders and consumers would make a loss if they sold or consumed material that was purchased at higher prices than today. Their reluctance to part with material leads to so-called “frozen stocks” in Chinese ports.
Large volumes of the material held in Chinese ports was bought in March and April when low-grade prices were trading between $6.08 and $6.22 per dry metric tonne unit (dmtu) on a cif basis, sources said.
Fastmarkets’ 37% manganese ore index, cif Tianjin rose 4 cents to $5.30 per dmtu on Friday June 28, having been under pressure since April due to deteriorating sentiment, which is largely linked to the high stocks...