According to a source in China, BHP Billiton indicated a price cut of USD 0.15 per mtu for its manganese ores shipped to China during October 2012.

The monthly price of the ores sold by BHP Billiton was raised 3 months in a row, i.e. for the shipments to China during May, June and July 2012, followed by rolled overs for August and September 2012. The price cut this time is probably intended for ore sales expansion, even if only a little, in China where the ferroalloy market situation has been long stagnated.

The new prices, for the shipments in October, are Gemco grade (Lumps, Mn: 46%): USD 5.20 per mtu, Metallurgical fines (Mn: 48%): USD 4.75 per mtu and South African low grade (Mn: 38% - 40%): USD 4.70 per mtu.

Already, a South African company, UMK (United Manganese of Kalahari) and CML (Consolidated Minerals Limited, an Australian company) both raised their ore prices earlier in August 2012, for shipments during October 2012, i.e. a cut by USD 0.15 per mtu by UMK and by USD 0.05 per mtu by CML, followed by this cut of BHP Billiton.

The quayside stocks of the ore at major ports in China are said to have declined to 2.388 million tons as of August 31st 2012 in a declining trend since early July at 2.70 million tonnes and 2.60 million tonnes mid August 2012. The sharp drop of the stocks is thought to be the result of importers' hold off in the continued ferroalloy market slump.

Source - TEX Report Limited

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