SMM Review of Domestic and Overseas EMM Market

Domestic EMM market:

As of March 25, the average EMM prices across the major EMM producing regions fell by 3,500 yuan/mt on the week, with mainstream prices ranging between 18,000-22,000 yuan/mt. The overall decline eased in the second half of last week, with a cool atmosphere for supply and demand negotiations.

China’s total exports of wrought manganese, manganese products, unwrought manganese, shredded scrap and powder stood at 26,100 mt in February 2022, down 25% month on month but up 11% year on year, according to SMM statistics. For supply, the operating rates of domestic manganese plants were less than 10% in January and February, with a small decline in stocks. As of mid to late March, some domestic manganese plants resumed work as planned with gradual rise of domestic supply. On the demand side, the impact of Russia-Ukraine conflict and the resistance of the terminal for high prices grew simultaneously. The demand for manganese metal declined and the prices of manganese fell below 20,000 yuan/mt, with some around 15,000 yuan/mt. In the second half of last week, the terminal purchasing willingness for unqualified and low-grade manganese products gradually weakened, and the overall supply and demand tended to rationalise.

Overseas EMM market

As of Friday March 25, the average FOB price at major ports fell sharply by $850/mt compared to March 18 at around $3,150/mt, and some transactions were below $2,900/mt with overall inactive purchasing overseas. In addition, according to the latest customs data, China's total import of electrolytic manganese metal and manganese products from January to February 2022 stood at 7,034 mt, close to the total import of 8,513 mt in 2021. The overall pressure on the export of the same period increased significantly, and the exports of EMM flake and manganese products of China fell 26% in February month on month. It is expected that there may not be a sharp increase of export in March. The entry of overseas EMM flake provided new alternatives for domestic demand. Domestic manganese market has no bullish opportunities in the short term. Comprehensively, under the declining prices of manganese last week, the terminal did not actively restock at the end of the month. The market shall still watch the market transactions this week.