Prices for manganese ore delivered to China edged higher this week on improved market sentiment as steel and ferroalloy prices picked up in recent weeks, and Chinese ore demand returned after the Lunar New Year holidays.

Reduced supply of South African ores due to several mine cutbacks in the past months have also provided support, multiple market participants said. Platts assessed its weekly 44% manganese ore price at $2.15/dmtu CIF Tianjin basis on Friday, up from $2.10/dmtu last week. The assessment for 37% manganese ore stood at $2.05/dmtu, up from a previous $1.90/dmtu same basis.

Offers for Australian 44%-45% lumps were heard at $2.20/dmtu CIF China and at $2.35/dmtu CIF India this week, for March shipments, sources said, with Gabon 44% ores heard traded at $2.10/dmtu CIF India and offered at $2.10/dmtu CIF China.

Offers for South African 37% ores were pegged at $2.10-2.20/dmtu delivered to both China and India, with trades heard done at $2.05-2.10/mt.

"The prices of all the grades seem to be converging now...South African ore prices have risen mainly on lower supply, while Australian ores are not increasing as much in prices so they can be more competitive," a Western trader said.

An Indian consumer source expected the improving and converging prices to be temporary, as there was no strong support in demand, and it would not make sense for buyers to pay for 37% when 44%-45% is about the same price.

A Chinese consumer source added: "sentiment is slightly better, but we're not overly optimistic yet, overall demand for manganese ore is still weak." A China-based Western trader and a Beijing trader, meanwhile, believed the Chinese would pay the higher levels for South African ores, as some of the plants may have requirements for blending, though such demand may be limited.

"Some plants will still buy South African ores if they need to blend, but it depends on individual plants...if prices are too close though, there will likely be a shift towards more Australian ores," the Beijing trader said.

Manganese ore import prices have also seen support from restocking demand at the Tianjin ports ahead of the Lunar New Year holidays from February 8-12, which resulted in higher port prices, sources said.

Spot prices for Australian origin 44-46% grade lumps at Tianjin port were heard Friday at around Yuan 25/dmtu ($3.80), up from around Yuan 20/dmtu before the holidays. Gabon 44% ores were pegged at Yuan 22-23/dmtu, up from a previous Yuan 18-19/dmtu. There were no offers for South African 36-37% ores heard at Tianjin port on Friday.