SHANGHAI, Sep 11 (SMM) – Short supplies and brisk demand accounted for the rebound in manganese prices in the past week after prices lost some 2,000 yuan/mt in August, SMM believes.
SMM assessments showed that ex-factory prices of manganese in major production areas across China averaged 17,500 yuan/mt as of Tuesday September 11, up 4.2% from 16,800 yuan/mt on August 31.
Healthy profit margins drove Chinese manganese producers to sell cargoes despite volatile prices. Tenders from mills stood relatively low in a falling market in August and depleted large amounts of stocks across manganese producers. This, coupled with continued production suspension in some areas, exacerbated market shortages.
Brisk demand also bolstered manganese prices. China’s week-long National Day holiday, starting from October 1, drove overseas buyers to purchase in advance.
South Korean steelmaker POSCO’s October tender came through last week, earlier than usual. The company’s purchasing price of manganese was heard at $2,550-2,560/mt cfr, up $41-51/mt from its September tender.