SHANGHAI, Dec 11 (SMM) – Top steel mills in China lowered their purchasing prices for steelmaking ingredients manganese in their latest tenders for December, as muted trades in the spot market grew bearish sentiment about prices, SMM assessed as of December 11.
Purchasing prices of manganese flake by most domestic steelmakers declined 200-500 yuan/mt month on month to 11,200-11,500 yuan/mt in December’s tenders, with prices of manganese briquette losing 300-500 yuan/mt to stand at 11,390-11,540 yuan/mt, SMM calculated.
Prices of manganese ingot, meanwhile, fell as much as 700 yuan/mt, to around 11,900 yuan/mt in tenders for December.
Baoshan Iron and Steel, also known as Baosteel, marked down its purchasing prices of manganese flake and briquette by 200 yuan/mt from November’s tenders, to 11,300 yuan/mt and 11,540 yuan/mt, respectively. Prices include taxes and transport costs.
Maanshan Iron & Steel, or Masteel, slashed its purchasing prices of manganese flake by 480 yuan/mt from a month ago, to 11,420 yuan/mt in its December tender.
Hunan Valin Xiangtan Iron & Steel settled its purchasing prices of manganese briquette at 11,390 yuan/mt for December, 510 yuan/mt lower on the month.
Xingjian Bayi Iron & Steel, under Baosteel Group, set its purchasing prices of manganese ingot 700 yuan/mt lower from a month ago at 12,300 yuan/mt, with procurement volume of only 240 mt.
Separately, South Korean steelmaker, Pohang Iron and Steel Company (POSCO), also cut its manganese flake purchasing prices by $62/mt, to $1,475/mt on a cif basis in the tender for January 2020, following after a $43/mt cut in prices in December’s tender.
Procurement volume of the company fell to 3,515 mt in January, compared with 4,845 mt in December.
Domestic manganese producers and traders see no profits from POSCO’s offers for January, SMM learned. SMM retains a pessimistic outlook for near-term manganese prices.