[Minor metal] Manganese Price Lacks Support

SHANGHAI, May 26 (CBI China) -- Prices of domestic refined manganese fell slightly due to support shortages, with the traded price in the RMB 12,500-12,700/mt range. No more production cuts appeared in Huanyuan region, so the supply seems to be ample; the downstream factories were uneager to purchase, so the dealers were pessimistic over the future price.

    A factory in Guangxi province said its operating rate was about 50%, greatly affected by the sluggish export market. The local factory will not sell goods at RMB 12,600/mt, while the buyers will not purchase above RMB 12,800/mt, leading to neutral market.

    Deals were mainly in the RMB 12,600-12,700/mt range in Chongqing region, and the factories said they carried out production based on orders in order to minimize market risks.

    CBI believes the price will likely move narrowly in the RMB 12,300-12,800/mt range in the short term. The cost will support the price, but the downstream demand will be not enough to support the price to rise.

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