SHANGHAI, Jul 9 (SMM) – Most steelmakers in China lowered purchasing prices for manganese in their latest tenders, SMM research found.
Prices for electrolytic manganese flakes were settled between 13,850-14,200 yuan/mt, with those for manganese metal ingots at 14,180-14,500 yuan/mt and those for manganese metal nodules at 13,950-14,090 yuan/mt.
This was down 100-230 yuan/mt from the last round of tenders for June. Prices all include tax and transport costs.
Purchasing prices from Shanxi-based Taiyuan Iron and Steel and Hebei Iron and Steel Group remained barely changed from June.
South Korean steelmaker, Pohang Iron and Steel Company (POSCO), also scaled back its manganese purchasing price, to $1,859-1,868/mtu on a cif South Korea basis in its tender for August.
This was down $9-18/mtu from the July tender, with procurement volume shrinking 95 mt to 3,990 mt. With Chinese yuan standing at 6.8881 versus dollar, the ex-factory price came in at 12,805-12,900 yuan/mt.
Quotes from manganese producers in the “Manganese Delta” at the junction of Guizhou, Hunan, and Chongqing hovered around 13,100-13,200 yuan/mt, tax included, as of Tuesday July 9, down 50-100 yuan/mt from June. Forward contracts were heard done at 12,800 yuan/mt.
Quotes from Guangxi held stable, supported by continued purchases by a major producer in the north.
Summer maintenance at some 200-series stainless steel mills probably accounted for the dip in prices in early July.
A manganese producer in Sichuan began maintenance from the end of June, and is likely to suspend for a month. This, together with anticipated purchases by the major northern producer, is likely to lend some support to the market.
Manganese prices are expected to maintain its weak but stable performance in the short term.