SHANGHAI, Dec. 19 (CBI China) -- Earlier this week, affected by tight supply in domestic spot market, the spot prices of refined manganese increased significantly with the highest trading prices at RMB 14,800/mt. The downstream steel mills and traders stopped purchasing and took a wait-and-see attitude due to prices hike, leading to the sharp decline in transactions. Since Wednesday, domestic prices were eased with the spot prices at RMB 14,300-14,600/mt and stabilized. Transactions have begun to slow down in Rotterdam spot market due to the production cuts in metallurgical and manufacturing industry in Europe, buyers find it hard to accept the continuous rise in the price of refined manganese, with few transactions at prices of USD 2,500/mt.
Manufacturers will deliver spot goods from nest week, for the delivery time comes. As there is no clear expectations about the future economic and market situations and higher prices, downstream consumers began to purchase spot goods.
Since orders decline, the market supply will increases, and the hidden period inventory during prices rising period will also be released. However, some small mines closed when prices fell and did not open now, the increase in silicon prices absorb some demand for manganese carbonate, as a result, domestic ore supply is relatively tight, which provide a certain support for the prices.
Next week the price is expected to stabilize with slight decline.
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