[Minor metal] SMM Forecast - Domestic Manganese Market

SHANGHAI, Sept. 11 (SMM) -- At present, operating rates at manganese producers were 70%, with relatively sufficient market supply. Downstream demand will record no significant improvement in the short term. In the mean time, a number of stainless steel mills and large steel mills have plans of production cuts and unit maintenance from late September to mid-October, resulting in declines in the demand for refined manganese.

    The maintenance at two major ore mines in Xiushan, Chongqing will last until National Day, which will likely result in tight ore supply and generate the reluctance of refined manganese producers in selling goods.

    Refined manganese prices will likely move downward further, as market supply surplus of refined manganese will not report marked improvement in the short term despite of high production costs. However, the closure of manganese ore mines for maintenance will likely help support manganese prices. Next week, traded prices for refined manganese will move in the RMB 13,800-14,000/mt range.

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