The world's biggest manganese ore supplier BHP has changed quarterly pricing to monthly pricing to put out a feeler in response to weak demand and increasing sales pressure.

The giant quotes May and June price at

1. USD 3.5 to USD 3.7 per tonne for Mn 43% to 44% lump

2. USD 4 to USD 4.1 per tonne for Mn 48% CIF

3. USD 3.2 to USD 3.3 per tonne for Mn 45% small grain Mn ore CIF

4. USD 2.8 to USD 2.9 per tonne for Mn 38% to 42% semi manganese carbonate ore

5. USD 3.7 per tonne for South African sinter Mn ore CIF

Comilog, CVRD and South Africa's Assmang have also followed BHP to adopt more flexible pricing strategies, slashing manganese ore prices for China by over 30% from Q2 levels.

BHP's monthly pricing has triggered strong reactions. Some traders believe BHP's move goes in line with market fluctuations and comes as no surprise.

Global steel overcapacity and unreasonable product mix will pull down the operation rate of Mn-series alloys producers by at least 40%, hence China's Mn ore imports will fall dramatically. BHP's strategy adjustment is an active reaction.

Some other players note BHP has controlled Mn ore price within a reasonable range, tempting some traders to come back to the market. However, traders dare not initiate mass purchasing as some Mn-series alloys producers still call for further Mn ore price drops.

Major suppliers' adjustment has delivered great pressure to some small rivals, who have to decide whether to follow the market or seek other strategies.

Despite the latest monthly price, it is still unclear whether China's Mn ore market can stay firm at this level. Some forecast imported Mn ore price will remain at USD 3 to USD 3.5 per tonne while some others predict price of USD 2.5 to USD 3 per tonne will lead to a balance.

(Sourced from www.Mysteel.net)
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