SHANGHAI, Oct 23 (SMM) – Spot prices of manganese weakened since mid-October as overseas steelmakers reduced their purchasing volumes from China and domestic producers of #200 stainless steel scaled back production in October.
The manganese physical market in China still saw oversupply even as stockpiles at manganese producers shrank with some plants suspending for overhaul. This will keep near-term manganese prices under pressure.
SMM assessments indicated that, as of October 23, prices of spot manganese in major production areas in China eased 100 yuan/mt from October 17 and stood at 11,200-11,300 yuan/mt.
This followed after higher purchasing prices by steel mills in early October supporting prices at around 11,350 yuan/mt during mid-September to mid-October. Producers in north China were reluctant to sell cargoes below 11,300 yuan/mt on the back of costs.
Currently, domestic orders accounted for most of the spot manganese trades while overseas demand subdued.
The market is looking for guidance from the purchasing prices by major steel mills in their November’s tenders.
SMM learned on October 23 that Nanjing Iron & Steel (NISCO) in Jiangsu province cut the purchasing prices of manganese ingot by 250 yuan/mt from October’s tender, to 12,250 yuan/mt (on acceptance, with taxes and transportation fees included) in its latest tender.
The procurement volume increased 500 mt from a month ago to 3,000 mt.