SHANGHAI, Aug 9 (SMM) – Oversupply has weighed on prices of electrolytic manganese across major production areas in China since the start of July, and a weak period for downstream demand is expected to keep prices lower in the weeks ahead.
SMM assessment showed that electrolytic manganese prices have lost some 750 yuan/mt during the past month. Quotes in key production areas of Hunan, Guizhou, Chongqing, and Guangxi stood at 12,400 yuan/mt as of Thursday August 8.
In south China, deals of spot manganese occurred at a low of 12,200 yuan/mt, closing to cost lines at producers.
Some suppliers reported dead stocks of around 600 mt since the latter half of July. The inclination to destock pressured manganese prices in the spot market.
Purchasing prices from major steel mills slid to their weakest of this year, as Hebei Iron & Steel, Baosteel, and Maanshan Iron & Steel lowered purchasing prices for electrolytic manganese, manganese ingot and briquette by some 850 yuan/mt in the August tenders.
Domestic exporters expected even lower purchasing prices by South Korean steelmaker Pohang Iron and Steel Company in its tender for September.