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|Price of Chinese Manganese Metal Drops by CNY200/Ton in a Week|
|=Although forecast is split on future market, but anticipation of a fall becomes strong=|
The price of electrolytic manganese metal in China dropped by CNY200 per ton in a week from the end of February, which is equivalent to a price drop of US$20 - US$30 in terms of U.S. dollar.|
In the Chinese domestic market, although the resumption of production is going on after the Chinese New Year Holidays and the quantity to be supplied to the market is increasing gradually, the volume actually traded is small due to buyers' weak motivation. Because of that, large-lot buyers like steel mills and stainless steel mills have lowered their purchase price.
On the other hand, as the price of nickel as a rival metal has continued to go up to a level of US$15,000, some hopes have been voiced that the consumption of manganese metal as a replacement will increase, but no change can be seen in the buyers' motivation.
In the main markets in China, albeit the producers in Chongqing City have lowered a price, the producers in other regions have still been hesitant to sell at a cheap price. Furthermore, some producers seem to produce only what they accept an order for in order to avoid losing money, and try to put a brake on the continuous declining trend in the market.
In the market, there are 3 ways of viewing as for short-term trends such as (1) The operating rate goes up due to a seasonal factor, and the market continues to decline due to increased supply, (2) Supply decreases due to producers' adjusted production arising from the matter of marginal production cost, and the market touches the bottom and (3) Due to further increased price of nickel, the demand for manganese metal increases and the market rebounds, but many of them anticipate a fall in the future market.
For a reference, in Japan, it is not yet in sight when Nippon Denko Co., Ltd. will resume production of SLP ferro-manganese, and accordingly some of trading firms realize the demand for manganese metal has gone up, and the inquiries about prices have come more than the end of February.
|last modified : Thu 13 Mar, 2014 [15:26]|