[Minor metal] Domestic Manganese Market Remains Sluggish

SHANGHAI, Oct. 15 (SMM) -- Today, mainstream offers for refined manganese are RMB 12,900-13,100/mt, and FOB prices were USD 2,520-2,550/mt. Ex warehouse in Europe was quoted at USD 2,600-2,700/mt on October 14th.

    Overseas refined manganese market remained sluggish, and a number of exporters offered USD 2,500/mt (FOB). An exporter in Hunan province said almost no inquiries were from Europe and the US due to lackluster export market, while inquiries from South Korea were up, but overall transactions were lukewarm.

    Domestic refined manganese prices remained weak as well, and 15-20 manganese enterprises have suspended production. Most manganese producers said there was no profit left in view of high costs. A manganese producer in Huyuan region, Hunan province said recently manganese ore powder prices were firm due to tight market supply, and the electricity price has grown to RMB 0.51-0.53/kWh, and production costs of manganese producers without own mines have exceeded current traded prices in the market.

    In addition, downstream demand remained weak. Domestic steel mills cut and suspended production, while stainless steel mills reported record-high inventories, leaving very low purchasing interest; traders were also cautious about purchases due to weak demand and drops in manganese prices. In general, trading volume was limited in domestic refined manganese market.

    SMM believes more than more manganese producers will halt production with continuous declines in manganese prices, weak demand, and higher raw material costs, which will likely help stabilize refined manganese prices. Most market players predict manganese prices will likely receive support at RMB 12,500/mt.

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