Metals News
[Minor metal] Refined Manganese Prices Stabilize in Domestic Market
smm insight
Dec 7,2009

SHANGHAI, Oct. 20 (SMM) -- Today, mainstream offers for refined manganese are RMB 12,900-13,000/mt, and refined manganese prices stabilized.

    According to SMM sources, manganese producers held low interest in moving cargos upon expectations that spot supply of refined manganese will become tight:

    First, more and more producers plan to suspend production upon the completion of long-term orders or after they consume all existing raw materials given higher production costs. A manganese producer in Hunan province said they will halt production late this month after put existing raw materials into finished goods. A number of manganese producers will plan to stop production if manganese prices continue to slip by the end of this month.

    Second, Central Government implemented strict environmental protection inspection in major manganese producing regions, and 10 manganese producers in Chongqing city have suspended production, and only 3-4 manganese producers maintained normal production in Jingxi region, Guangxi province. However, any negative impact from environment inspection on manganese producers will be limited, since the inspection is mainly carried out at refined zinc producers, and is partially implemented in refined manganese producers.

    However, SMM believes downstream demand remains soft, and manganese market outlook is also pessimistic, so current positive news in refined manganese market will be not enough to support manganese market sentiment to recover.


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