[Minor metal] SMM Analysis of Manganese Prices

SHANGHAI, July 28 (SMM) -- Refined manganese prices continued to advance in domestic market, and today's mainstream traded prices were in the RMB 13,900-14,200/mt range. Factories still kept offers firm, and spot supply was limited in the market, mainly for orders.

    A factory in Chongqing said, “we have signed orders for next month at RMB 14,000/mt. Currently, costs of manganese ore and sulfuric acid were up, so it is reasonable for manganese prices to climb.” Another factory in Guizhou province agreed, “current prices for refined manganese have been very low in the memory given the tightness of manganese ore supply, and factories could just turn losses into slim profits.”

    According to SMM sources, 80% of upstream factories were optimistic towards future prices and were confident in market outlook, in view of higher costs, low factory inventories and stable downstream demand.

    As to downstream stainless steel mills, it has been very hard for mills to accept manganese prices above RMB 14,000/mt, so stainless steel markets remained quiet recently. Based on current prices and transactions, the highest manganese prices stainless steel mills can accept are in the RMB 14,500-15,000/mt range, and then any upward room for refined manganese prices will be very limited.

    Stainless steel prices showed a sign of rise during recent days. In this context, refined manganese prices are expected to rise further, if stainless steel prices increase.

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