Monthly Manganese Flake Market Report Jul 2019
2019-08-12 17:35:36 【Print】
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1. Market Highlights
This month, downstream demand for Chinese manganese flake remained weak and most producers in South China suffered inventory pressure. Although Tianyuan Manganese kept stabilizing the market and continued to purchase spot material from producers in South China, the strategy didn't work as well as in June. Producers in South China were active in concluding deals in order to recoup funds rapidly while most consumers squeezed down on prices. During the first three weeks of July, manganese flake prices showed a slow downtrend, but transaction prices for manganese flake 99.7%min still stabilized at RMB13,000/t (USD1,840/t) EXW D/P. From late July on, Tianyuan Manganese didn't purchase spot material from producers in South China any more and stopped stabilizing market price. At the end of July, producers in South China gradually reduced manganese flake prices to below RMB13,000/t (USD1,840/t) to recoup funds. In late July, mainstream transaction prices for Chinese manganese flake 99.7%min were RMB12,700-12,900/t (USD1,798-1,826/t) EXW D/P, down by RMB350/t (USD49.55/t) from late last month. In addition, Chinese steel mills released August's bidding results successively in late July and their purchase prices dropped notably, which further aggravated the pessimistic attitude of market participants.
Affected soft demand for Chinese manganese flake from overseas customers during the traditional summer vacation of European market and U.S. market, most export traders suffered a sharp decline in trade volume in July. With the slight price downtrend in Chinese market, most overseas customers squeezed down on prices and waited on the sidelines. Purchase prices of overseas steel mills declined substantially too.
On the whole, manganese flake prices showed a slow downtrend in July. By the end of July, most upstream suppliers and downstream customers were pessimistic about market outlook.
This month, downstream demand for Chinese manganese flake remained weak and most producers in South China suffered inventory pressure. Although Tianyuan Manganese kept stabilizing the market and continued to purchase spot material from producers in South China, the strategy didn't work as well as in June. Producers in South China were active in concluding deals in order to recoup funds rapidly while most consumers squeezed down on prices. During the first three weeks of July, manganese flake prices showed a slow downtrend, but transaction prices for manganese flake 99.7%min still stabilized at RMB13,000/t (USD1,840/t) EXW D/P. From late July on, Tianyuan Manganese didn't purchase spot material from producers in South China any more and stopped stabilizing market price. At the end of July, producers in South China gradually reduced manganese flake prices to below RMB13,000/t (USD1,840/t) to recoup funds. In late July, mainstream transaction prices for Chinese manganese flake 99.7%min were RMB12,700-12,900/t (USD1,798-1,826/t) EXW D/P, down by RMB350/t (USD49.55/t) from late last month. In addition, Chinese steel mills released August's bidding results successively in late July and their purchase prices dropped notably, which further aggravated the pessimistic attitude of market participants.
Affected soft demand for Chinese manganese flake from overseas customers during the traditional summer vacation of European market and U.S. market, most export traders suffered a sharp decline in trade volume in July. With the slight price downtrend in Chinese market, most overseas customers squeezed down on prices and waited on the sidelines. Purchase prices of overseas steel mills declined substantially too.
On the whole, manganese flake prices showed a slow downtrend in July. By the end of July, most upstream suppliers and downstream customers were pessimistic about market outlook.
