SHANGHAI, Nov. 25 (SMM) –
Electrolytic manganese metal (EMM) prices in China edged lower to RMB 12,600-12,700/mt last week. Producers held offers firm against high production costs, while traders tried to push for lower prices now that producers are confronting with tighter liquidity at the month’s end, leaving trading stagnant.
SMM expects EMM prices to move in a RMB 12,500-12,600/mt range this coming week. EMM monthly output is now around 90,000 mt, leaving supply and demand in the market basically balanced. On the one hand, steel mills will begin to purchase EMM via bid invitation at the month’s end, but any growth in demand will be limited, lending marginal support to EMM prices. On the other hand, producers will refrain from selling at below production cost of RMB 12,500/mt. As such, EMM prices may find solid support at RMB 12,500/mt.