[Minor metal] SMM Forecast - Domestic Manganese Market

SHANGHAI, Oct. 16 (SMM) -- More and more manganese producers suspended production, leaving a downward trend for market supply. However, operating rates at refined manganese producers remained above 80%, and inventories at producers were high, limiting any positive impact from production stoppages on manganese market; operating rates at stainless steel mills dropped significantly, and small steel mills reported more production cuts and suspension, while large steel mills limited production for maintenance, so SMM predicts stainless steel mills will purchase on as-needed basis recently.

    SMM believes raw material prices have declined slightly due to sluggish downstream demand, so refined manganese prices are expected to fall further. However, there will be more refined manganese producers to halt production, and operating rates at producers with capacity of 5-20kt/yr have dropped to 67%. SMM predicts manganese prices will likely hit the bottom when operating rates at selected manganese producers fall to 50%.

    Next week, refined manganese prices are expected to move in the RMB 12,700-12,900/mt range.

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