Weekly Review and Forecast on Manganese Market (Jan. 11-15)-Shanghai Metals Market

Hot Keywords

  • Zinc
  • Inventory data
  • Futures movement
  • MMi Iron Ore Port Index
  • Copper scrap
  • Nickel
  • Copper
  • Aluminium
  • Stainless steel
  • Macroeconomics
  • Evening comments
  • Production data
  • inventory
  • Tin
  • Market commentary

Weekly Review and Forecast on Manganese Market (Jan. 11-15)

SMM Insight 07:32:58PM Jan 08, 2010 Source:SMM

SHANGHAI, Jan. 8 (SMM) --

1) Market Review and Weekly Hotspot

Market Review

This week, manganese prices climbed steadily and remained stable temporarily at RMB 15,000/mt from the level at RMB 14,500/mt due to tight electric power supply at manganese producers, increasing costs and expectation of purchase from downstream consumers.

Supply

Operating rates at manganese producers remained at 70%, and supply of manganese declined; prices of ore powder increased significantly, and costs at manganese producers kept on rising. Most producers were reluctant to move goods due to reduced supply and increased high costs.

Demand

This week, stainless steel market didn't improve, and trading volumes from stainless steel industries was low; although ferromanganese producers did have purchasing demand, they adopted a wait-and-see attitude due to steady climb of manganese prices. Most middlemen finished stock replenishment, and a wait-and-see sentiment was expending in the market. This week, middlemen only make purchases when they received orders from clients.

Weekly Hotspot

Supply of electric power was slightly tight and prices of ore powder were climbing.

2) Forecast

Supply

Operating rates remains at 70% at manganese producers due to tight supply of electric power supply. Supply of manganese may decline further; meanwhile, raw materials like ore powder and sulfuric acid remained at high levels, and high costs will not likely to decline before the Chinese New Year holiday. Producers' interest in moving goods may be low due to support of high costs and tight supply of manganese from the market.

Demand

Although demand from stainless steel industry doesn't improve, stainless steel mills will replenish stock in a small amount to the end of January, and they will not make large amount of purchase next week; prices of imported manganese ore has climbed steadily, and demand of EMM from ferromanganese is increasing. However, most ferromanganese have adopted a wait-and-see attitude when manganese prices are high at present levels, and they have no plan to make purchase in a large amount; there are some inventories held by middlemen, and they will mainly remove goods and only make purchase in a small amount when prices are at high levels.

Analysis

Prices will get support due to high costs (costs are above RMB 14,500/mt for 3/4 manganese producers) and tight supply of electric power, but currently most purchasers adopted a wait-and-see attitude although they did have purchasing need. It is expected that rising room for manganese prices will be limited next week, and prices will move around RMB 15,000/mt. Manganese prices will climb further when downstream demand is released in the future.

 

Copyright © SMM. All Rights Reserved

None of this material may be used for any commercial or public use in any forms or means, without the prior written consent of SMM. For reproduction issue, please contact us by email: service.en@smm.cn
 

Weekly Review and Forecast on Manganese Market (Jan. 11-15)

SMM Insight 07:32:58PM Jan 08, 2010 Source:SMM

SHANGHAI, Jan. 8 (SMM) --

1) Market Review and Weekly Hotspot

Market Review

This week, manganese prices climbed steadily and remained stable temporarily at RMB 15,000/mt from the level at RMB 14,500/mt due to tight electric power supply at manganese producers, increasing costs and expectation of purchase from downstream consumers.

Supply

Operating rates at manganese producers remained at 70%, and supply of manganese declined; prices of ore powder increased significantly, and costs at manganese producers kept on rising. Most producers were reluctant to move goods due to reduced supply and increased high costs.

Demand

This week, stainless steel market didn't improve, and trading volumes from stainless steel industries was low; although ferromanganese producers did have purchasing demand, they adopted a wait-and-see attitude due to steady climb of manganese prices. Most middlemen finished stock replenishment, and a wait-and-see sentiment was expending in the market. This week, middlemen only make purchases when they received orders from clients.

Weekly Hotspot

Supply of electric power was slightly tight and prices of ore powder were climbing.

2) Forecast

Supply

Operating rates remains at 70% at manganese producers due to tight supply of electric power supply. Supply of manganese may decline further; meanwhile, raw materials like ore powder and sulfuric acid remained at high levels, and high costs will not likely to decline before the Chinese New Year holiday. Producers' interest in moving goods may be low due to support of high costs and tight supply of manganese from the market.

Demand

Although demand from stainless steel industry doesn't improve, stainless steel mills will replenish stock in a small amount to the end of January, and they will not make large amount of purchase next week; prices of imported manganese ore has climbed steadily, and demand of EMM from ferromanganese is increasing. However, most ferromanganese have adopted a wait-and-see attitude when manganese prices are high at present levels, and they have no plan to make purchase in a large amount; there are some inventories held by middlemen, and they will mainly remove goods and only make purchase in a small amount when prices are at high levels.

Analysis

Prices will get support due to high costs (costs are above RMB 14,500/mt for 3/4 manganese producers) and tight supply of electric power, but currently most purchasers adopted a wait-and-see attitude although they did have purchasing need. It is expected that rising room for manganese prices will be limited next week, and prices will move around RMB 15,000/mt. Manganese prices will climb further when downstream demand is released in the future.

 

Copyright © SMM. All Rights Reserved

None of this material may be used for any commercial or public use in any forms or means, without the prior written consent of SMM. For reproduction issue, please contact us by email: service.en@smm.cn