[Minor metal] CBI Forecast - Domestic Manganese Market

SHANGHAI, July 24 (CBI China) -- Demand: on the one hand, domestic steel mills have finished their purchases of manganese ingots and the demand from stainless steel sector showed a sign of decline, which will exert negative impact on refined manganese market. On the other hand, the demand from low-carbon ferromanganese climbed steadily, which will exert positive impact on refined manganese market recently. Any increases in exports of manganese will be limited due to higher prices. Supply: domestic medium and small producers continued to increase their output, which will lead to continuous increases in domestic supply, exerting downward pressure on manganese prices. The market fundamentals remained weak.

    The tightness of manganese supply failed to be eased, and its prices remained high. Besides, prices for selenium dioxide and other support materials grew as well, resulting in steady increases in manganese costs, which will also help support refined manganese prices. Prices for imported manganese ore will fall with the increases in the arrivals of ore at ports. Factories will report some changes in their unwillingness of cargo movement with increased market supply. Special attentions should be focused on the dealers’ movement.

    Refined manganese prices will hit the top line, and will unlikely break RMB 14,000/mt. Next week, refined manganese prices will fluctuate in the RMB 13,500-14,000/mt range.

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