[Minor metal] SMM Forecast - Domestic Manganese Market

SHANGHAI, Oct. 23 (SMM) -- At present, refined manganese market was mainly affected by macro economic news and market confidence. Downstream demand remained sluggish, but stainless steel transactions became brisk, and raw material purchases by steel mills also improved market demand, raising the optimistic market sentiment.

    Currently, mainstream cost prices are RMB 13,000/mt. Production costs will support refined manganese prices to a certain extent along with rising electricity prices in late October. In addition, the number of manganese producers to suspend production increased, generating the reluctance by producers to move goods, which will help push up manganese prices in the short term.

    SMM believes although domestic stainless steel prices rebounded slightly, the demand for stainless steel remained weak, and operating rates at stainless steel mills remained unchanged, an indication of no significant improvement in market demand. In this context, any upward movement for manganese prices will be limited, and refined manganese prices are expected to move in the RMB 13,100-13,300/mt range next week.

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