SHANGHAI, Jul. 7 (SMM) -- Manganese flake fell for the seventh time in a month on Friday in the EU, losing up to USD 25/mt amid weak demand and continued concerns about the impact of smuggling.
Material traded at $2,630-2,750 per tonne, down from $2,650-2,775 per tonne, where prices fell on June 2.
"The smuggled material from Vietnam creates a two-tier market, which helped bring down EMM prices," a trader told that "If demand continues to be weak, EMM prices will fall further."
Higher electricity prices in China failed to support prices, despite factories saying they will not produce when prices are so close to the cost of production, according to another trader.
But a third trader predicted prices will soon find their low point and bounce back, saying all the signs showed a recovery is likely.
"Electricity's going up and I know a couple of producers who don' want to compete at this level. Manganese flake might go down $30-40 more, but in the long run I think it will flatten out and go up," the trader reported.
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