[Minor metal] Domestic Manganese Market Remains Neutral

SHANGHAI, Sept. 24 (SMM) -- Today, mainstream traded prices for refined manganese were RMB 13,600/mt, with limited deals done in the market.

    Traders adopted a cautious attitude towards purchases due to uncertain manganese market outlook. In the mean time, downstream steel mills held low interest in stock replenishment, resulting in slim trading sentiment.

    Manganese producers were reluctant to sell goods due to high production costs. A manganese producer in Hunan said a number of mines in Hunan will start maintenance during National Day holiday, so manganese ore prices remained firm. Although prices for sulfuric acid and selenium dioxide dropped slightly, electricity prices grew by RMB 0.03/kWh since early September, so production costs remained high. They preferred to shut down for maintenance in attempt to control inventories and output given falling manganese prices.

    Sources report that two major mines in Xiushan, Chongqing have suspended production for one month, and there will be no downward room for manganese ore prices in Xiushan in the short term.

    However, a number of market players believe manganese ore supply will increase along with rising operating rates at mines, and ore prices will likely drop slightly, if manganese prices remain weak.

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