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| Serious Accident By Collapse At Slag Dam May Influence On Price Of Chinese Ele-Mn-Met |
| = Safety Inspection Takes 45 Days, Marked To See How Does This Accident Affect Domestic Price |
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An accident occurred on the 14th of May by a collapse at slag dam, located in Huayuan district of China, and it is now marked to see how extent does this accident influence on price of electrolytic manganese metal produced in China. The authorities concerned will take 45 days to perform a safety inspection in relation to this accident and the investigation will put a ceratin influence on operations for production of electrolytic manganese metal. The cost to produce manganese carbonate at local mines in China is not profitable and the supply of this ore has become tight. The personal damages by a collapse at slag dam are not known yet in detail but three workers were died and four have been injured. (1)Domestic market = The market price of Chinese electrolytic manganese metal had been maintained on a stable tone in the last 2 weeks and its supply and demand have been balanced for a short sight. The domestic price of this metal has been kept on the level of CNY12,800 - 13,000 per metric ton ex. refinery. In spite of a depression of the world economy, consumers are moving with an intention to purchase raw materials in accordance with their production activities. In expectation of a revival in production of 200 series stainless steel caused by a rebound of nickel prices, the inquiries for electrolytic manganese metal to purchase from distribution sector are becoming active. In order to cope with the decreased stocks of electrolytic manganese metal, consumers have intended to supplement their stocks of this metal and a temporary target is supposed to stock electrolytic manganese metal for consumption in one to two months. The current price of Chinese electrolytic manganese metal has been improved in comparison with CNY12,500 per ton as prevailed in a previous time and, therefore, some of Chinese refineries are moving to conclude contracts for June shipments. Under the situation as mentioned above, Chinese producers of electrolytic manganese metal are being certainly simulated to increase the production of this metal. It is marked to see how extent does this accident by a collapse at slag dam influence hereafter on price of Chinese product. (2)Overseas market = In comparison with price of electrolytic manganese metal in domestic market of China, the current price of electrolytic manganese metal to export from China to overseas countries has been stabilized and the negotiations on exports of this metal from China have had a lack of surge but the parties concerned have taken an attitude to watch carefully about movements on price of electrolytic manganese metal in domestic market of China. Although a signal to be tightening somewhat the supply of Chinese electrolytic manganese metal in Europe has been informed, the market price of Chinese electrolytic manganese metal in Europe at present is in the range of US$2,420 - 2,480 per metric ton ex warehouse in Rotterdam on DDU base (delivered but duty unpaid). The price of Chinese electrolytic manganese metal offered for export is on a level of US$2,400 - 2,500 per metric ton FOB China and its mean comes to US$2,400 - 2,450 per metric ton on FOB China base. The negotiations to rise further export price of electrolytic manganese metal are supposed to be unable to compromise. It is thought to be too early to accumulate the stocks of Chinese electrolytic manganese metal in overseas countries in preparation for holidays in summer season and this arrangement is not required to be expedited. According to an analyst, the market price of Chinese electrolytic manganese metal is anticipated to swing back to a fall but a range to adjust the price has been also viewed with a small extent. The cost to produce electrolytic manganese metal in China has checked a fall of price for this metal. The market price of Chinese electrolytic manganese metal for export is estimated to move in a range of US$2,400 - 2,500 per metric ton FOB. At all events, a further movement of price for Chinese electrolytic manganese metal depends on how extent does a recovery of nickel prices spread out its effect to production of 200 series and 300 series stainless steel. |
| last modified : Wed 03 Jun, 2009 [10:24] |
