[Minor metal] Domestic Manganese Producers Hold Low Interest in Cargo Movement

SHANGHAI, Oct. 22 (SMM) -- Today, mainstream offers for refined manganese are RMB 12,900-13,100/mt, and mainstream traded prices were RMB 12,900-13,000/mt yesterday.

    Manganese producers kept offers firm and a number of traders said no goods were available when prices were below RMB 12,900/mt yesterday afternoon. SMM believes three reasons are behind the reluctance by manganese producers to move goods.

    First, more and more manganese producers halted production due to high ore powder prices, generating market expectations of supply declines. 3 manganese producers have suspended production in Huayuan, Hunan province, and another manganese producer with capacity of 20-30kt/yr in Hunan province will likely stop production by the end of October.

    Second, manganese producers kept moving existing inventories recently in order to minimize market risks. A trader in Ningbo city said a portion of producers sold goods to generate cash recently, and the number of traders to purchase low-prices goods increased as well. But now fewer manganese producers intend to move cargos.

    Third, most producers received more orders than before, with orders mainly from steel mills, which further reduce the willingness of producers to move goods.

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