Brazilian manganese ore prices stay at a high level
2010-01-28 08:41:59 【Print】
PITTSBURGH (Asian Metal) 28 Jan 10 – Manganese ore export prices out of Brazil continue at a high level and continue to follow the international trend, according to active market participants. Assuming there is no drop in demand from buyers in China, all signs point to higher pricing through the remainder of the first quarter.
Prices of medium-grade material of 44%min, are unchanged so far this week at USD4.5-4.6/dmtu, depending procurement size.
A US trader, who sources material from Indonesia and Brazil, is currently finalizing a deal with a Chinese buyer for 5,000t/m at USD275/t (USD5.7/dmtu) CIF China for 48%min ore. The contract is to last a total of six months, and is expected to be finalized in the first week of February.
“Prices are definitely on the rise,” the source said. “Our suppliers have pushed up prices almost 15% since the end of 2009.”
The trader, who has access to approximately 10,000t/m of 44%min from Brazil as well, has found several interested buyers, but pricing and logistics are significantly more favorable out of Southeast Asia; especially when the destination is China.
“The Brazilian market has shown increases in the early part of 2010 as well, but ocean freight costs from Brazil to China are more than twice what they are from Indonesia to China,” the trader said. “Brazilian [manganese ore] pricing of comparable grade is about USD25-30/t lower as a result of the freight costs.”
Another US trader, who had up until the beginning of 2010 had access to around 15,000t/m of 44%min, is still searching for a viable supplier. The source cited prices at USD4.5/dmtu FOB Brazil, but at present he has no material currently available to source.
“We are working with a few very solid buyers, but there are no firm sources from which I can draw material,” the source said. “And you definitely do not want to enter into a deal if you cannot reliably produce the ore.”
Prices of medium-grade material of 44%min, are unchanged so far this week at USD4.5-4.6/dmtu, depending procurement size.
A US trader, who sources material from Indonesia and Brazil, is currently finalizing a deal with a Chinese buyer for 5,000t/m at USD275/t (USD5.7/dmtu) CIF China for 48%min ore. The contract is to last a total of six months, and is expected to be finalized in the first week of February.
“Prices are definitely on the rise,” the source said. “Our suppliers have pushed up prices almost 15% since the end of 2009.”
The trader, who has access to approximately 10,000t/m of 44%min from Brazil as well, has found several interested buyers, but pricing and logistics are significantly more favorable out of Southeast Asia; especially when the destination is China.
“The Brazilian market has shown increases in the early part of 2010 as well, but ocean freight costs from Brazil to China are more than twice what they are from Indonesia to China,” the trader said. “Brazilian [manganese ore] pricing of comparable grade is about USD25-30/t lower as a result of the freight costs.”
Another US trader, who had up until the beginning of 2010 had access to around 15,000t/m of 44%min, is still searching for a viable supplier. The source cited prices at USD4.5/dmtu FOB Brazil, but at present he has no material currently available to source.
“We are working with a few very solid buyers, but there are no firm sources from which I can draw material,” the source said. “And you definitely do not want to enter into a deal if you cannot reliably produce the ore.”
