SHANGHAI, Mar 20 (SMM) – SMM estimates that China’s production of electrolytic manganese to rebound 41.89% from February to 93,000 mt in March, as the daily average supply has exceeded 3,600 mt as of March 19. The increase in supply will likely keep near-term manganese prices subdued as demand in China and overseas has not recovered considerably.
Some downstream steelmakers launched fresh tenders for the purchases of manganese flake, briquette and ingot, which temporarily stemmed the slide in manganese prices.
As of March 20, spot prices of electrolytic manganese in major production areas stood at 10,300-10,500 yuan/mt, flat on the week while down 600 yuan/mt from two weeks ago, showed SMM assessments. Fob prices of manganese departing from Chinese ports stabilised around $1,550/mt, with exporters reporting declines in overseas enquiries compared with February.
On the downstream front, inventories of #200 stainless steel remained elevated in Wuxi and Foshan, which drove major sellers to cut offers. As of March 19, quotes of #201 cold-rolled stainless steel coil in Wuxi stood at 7,350 yuan/mt, down 100 yuan/mt from the average price last Friday. During the same period, quotes of #201 cold-rolled stainless steel coil in Foshan slipped 150 yuan/mt to 7,250 yuan/mt.
The stainless steel sell-off may continue in the short run amid the continuous new arrivals and backlogged inventories. This is expected to keep near-term prices of #200 stainless steel weak and weigh on the upstream manganese prices.
