SMM Weekly Forecast on Manganese Market

SHANGHAI, July 30 (SMM) --

Demand

Demand hasn't recovered significantly. The rebound of steel prices has already come to an end. Upward momentum for stainless steel prices weakened, and the high inventories haven't reduced due to the sustainable weak demand. In this context, purchases for EMM are expected to be weak, and any room for EMM prices to advance is small. In this context, traders are expected to continue adopting a wait-and-see attitude.

Supply

Supply of goods has already tight at main EMM spot trading regions. Operating rates at EMM producers in Hunan province have stayed at low level for a long time, leading to tight supply of goods in that region, and recent supply of EMM is concentrated in Xiushui region, leading to tight supply of goods in Xiushui region as well. Operating rates continued to be low at Guangxi province. Overall operating rates at EMM main producing regions were less than 50%, and supply of goods will be relatively tight.

Analysis

Prices will be largely stable due to stagnated sentiment between purchasers and suppliers under that context that demand continued to be weak and supply of goods was relatively limited.

Forecast

However, SMM believes that EMM price will begin to fluctuate after price bubble bursts. It is expected that EMM prices will fall to move around RMB 14,600-14,800/mt in the following week.

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