Manganese ore market warns of further steep downside amid oversupply, liquidation risk

Manganese ore market participants are predicting further sharp price falls due to oversupply, rising stocks and the prospect of traders liquidating positions to secure cash.

Traders have lost large sums on cargoes that devalued on water, arriving at their destinations worth significantly less than when they were booked.
While they would prefer not to part with material at a lower price than they paid, there is a risk that traders will liquidate their stocks before prices fall even further, in order to secure cash before the end of the year, sources said.
“We are trying to liquidate as fast as possible. At the end of last week we still had a large volume to sell. Sometimes first loss is the best option,” one trader told Fastmarkets.

Fastmarkets’ manganese ore index 37% Mn, cif Tianjin dropped 5.4% to $4.17 per dry metric tonne unit (dmtu) on Friday October 18 and has fallen...

Published

Janie Davies

Jon Stibbs

Amy Lv

October 24, 2019

11:50 GMT

London, Shanghai