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This is because GEMCO, one of the world's
largest manganese miners, revealed that due to the partial destruction of the
mine's dock by Tropical Cyclone Meghan, the company will not export again until
the quarter of March 2025.
Due to the change of mining sequence, the
mining output of grade ore has increased by 39%, while Jupiter hopes to use the
improved manganese market conditions to increase the output by 22%.
The price of manganese ore (37%) increased
from $2.97/dmtu in the March quarter of this year to $4.62/dmtu in the June
quarter. The price reached its highest point of $4.82/dmtu at the end of June,
but fell back to $3.62/dmtu by the end of July.
The improvement in quarterly profitability
in June led to an increase in applicable patent fees. This is the main reason
for the increase in Jupiter's production costs.
The report also emphasized market
volatility, especially for high-grade manganese ore, with significant
fluctuations in spot prices.
At the end of July, the price of high-grade
manganese ore briefly hit $8.97//dmtu CIF Tianjin, rising nearly $0.70/dmtu
within a month.
Despite the quarterly average price
increase in June, the price of 36.5% grade manganese ore fell from $5.67/dmtu
in June to $4.50/dmtu in July due to increased exports from South Africa.
Due to the expected shortage of high-grade
manganese ore supply, ferroalloy plants outside of China (which usually rely
more on high-grade ore to produce manganese alloys) are seeking alternative
supply sources, resulting in a decrease in the export of high-grade ore from
producers to China.
This has affected China's inventory levels
and pushed up prices.