According to the Customs statistics, China's imported manganese ore and the ore concentrate (hereinafter referred to as the manganese ore) accounted for 4.759 million tons from January to July in this year, so as to raise 45.6% as compared with that at the same period last year (similarly hereinafter). The value thereof reached USD 1.97 billion, increasing sharply by 3.6 times; the average import price reached USD 413.2/ ton, increasing by 2.2 times. In July, the import volume of the manganese ore accounted for 907,000 tons, which costs USD 430 million, increasing by 83.1% and 3.3 times; the average import price was USD 469.3 /ton, increasing by 1.4 times. The main features of the import mainly include:
I. Main features of China's manganese ore import from January to July in this year
(I) In July, the monthly import volume was increased and the average import price was at a high position. Since this year, China's import volume for the manganese ore has been growing rapidly, so that the import volume in July reached 907,000 tons, increasing by 83.1% year on year and the comparative growth on moving base reached 27.4%. Also, at the same time, China's average import price for the manganese ore was continuously raised. In this April, the average import price per month broke through USD 400 /ton for the first time. The price declined slightly after raising to USD 488.3 /ton in June. The average import price in July reached USD 469.3/ton, increasing 1.4 times, comparative decline on moving base was 3.9%.
(II) The ordinary import exceeded 90% and the import of the border trade in small amount was increased sharply. From January to July in this year, China's manganese ore import via the ordinary trade reached 4.253 million tons, increasing by 32.1%, accounting for 89.4 % of China's total manganese ore import at the same period. The manganese ore import via the border trade in small amount reached 338,000 tons, increasing sharply by 6.3 times.
(III) Import volume from Australia, South Africa and Gabon accounted for 70% of the total. From January to July in this year, the manganese ore of 1.727 million tons and 1.131 million tons were respectively imported by China from Australia and South Africa, increasing 15.7% and 1.1-fold. The manganese ore of 652,000 tons was increased from Gabon, declining by 3.6%. Total import from the above three countries accounted for 73.8% of China's total manganese ore at the same period.
(IV) The state-owned enterprises are the major importers and the import from the private enterprises is increased rapidly. From January to July in this year, the state-owned enterprises imported the manganese ore of 2.337 million tons, increasing by 40.3%, accounting for 49.1% of China's total manganese ore import at the same period. Also, the private enterprises imported the manganese ore of 1.315 million tons, increasing by 81.2% and accounting for 27.6 % thereof.
From January to July in this year, both the import volume and price of China's manganese ore were increased due to the major reasons as below:
I. Following the Wenchuan Earthquake in May, the state suspended the manganese ore production in the disaster area for safety considerations, so that China's largest manganese ore production bases in Xiushan Mountain, Chongqing; Huayuan, Hunan and Songtao, Guizhou were all closed downed. Thus, the manganese ore was badly needed [1] in the home market, so as to drive the sharply increase of the manganese ore import.
II. The global freight rate for the sea transportation was continuously raised with the increase of the international oil price in the first half of this year. In the middle June, the sea freight from Australia to China reached USD 50/ton, 64% up as compared with that in the end of the 1st quarter, so as to boost China's import price for the manganese ore.
III. The price for the top quality manganese ore in Australia and Gabon, etc. was continuously increased. In this June, Australia's manganese ore price for China was raised from less than USD 3/ton at the beginning of 2007 to USD 17/ton. Also, the prices for the top quality manganese ore imported from South Africa were raised, so as to raise China's import price for the manganese ore.
It shall be concerned that recently, due to the overheated market anticipation, the manganese ore may be overstocked at the port. For example, currently, the manganese ore inventory is large in Tianjin port, accounting for over 400,000 tons, among which the fine ore and non-regular manganese ore takes the majority. The manganese ore import was sharply increased owing to the anticipation on the badly demand of the manganese ore. However, due to the over high price of the imported manganese ore, the ferroalloy producers use the imported manganese ore as less as possible or not use the imported manganese ore. Meanwhile, both the imported fine ore and non-regular manganese ore have a poor quality. In addition, most ferroalloy producers stopped production or reduced the output during the Olympic Games, so that the purchase demand for the manganese ore was lowered. Thus, the manganese ore was overstocked at the port.
So, we should pay close attention to the import trends of the manganese ore. Thus, the measures could be taken to channelize the overstocked manganese ore at the port, so as to avoid hoarding and speculation as well as large price fluctuations in China's manganese ore market. Meanwhile, the strategic reserve system for the manganese ore shall be further established and the investment on the overseas mine shall be increased. Also, safety factor for the resources shall be improved.
