SHANGHAI, Oct. 27 (SMM) -- Today, mainstream offers for refined manganese are RMB 13,200-13,300/mt, and traders increased purchases as a result.
Refined manganese producers said traders increased purchases significantly as a result of rising manganese prices. A trader in Ningbo said previously traders limited inventories in an attempt to minimize market risks given sluggish downstream demand and also predicted manganese prices would fall to RMB 12,500/mt. However, manganese prices advanced unexpectedly, raising the purchasing interest by traders.
In addition, cold-rolled product market is bullish currently, and cold-rolled producers began purchasing raw materials in view of eased cash flow. Sources report that traders in Dainan region were mainly purchasing 60-100mt every day, while traders in Jishou city purchased normally upon the completion of previous stock build-up.
A manganese producer in Hunan province said the tenders from steel mills this month were flat at last month levels, and a number of producers may receive more orders at higher prices from September levels.
SMM believes present bullish demand from steel mills and more purchases by traders will help push up manganese prices further. However, special attentions should be paid to the possible oversupply, since the actual demand from downstream stainless steel mills and rising manganese prices will likely increase the operating rate at manganese producers.
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