SMM EMM Weekly Price Review and Forecast (Mar. 10-14, 2014)

SHANGHAI, Mar. 10 (SMM) – Prices for electrolytic manganese metal (EMM) in China dropped all the way down to RMB 12,400/mt last week. Three factors contributed to the decline. First, #200 stainless steel mills pushed for lower input costs against sluggish steel market. Second, consumption faltered following aggressive purchases in late February. Third, traders were cautious about buying out of bearishness. Some EMM producers sold at RMB 12,300/mt (ex-works price) and are willing to offer bigger discounts if purchasing volumes are large.  

Supply is growing in major producing regions, especially in Xiushan. Demand, however, remains tepid. As such, EMM prices are expected to fall by another RMB 50-100/mt this coming week.