Manganese market unclear on new policy

BEIJING (Asian Metal) 31 Dec 06 - Not long after the imposition of 15% export tax on unwrought manganese, China announces that unwrought manganese, scraps, powder, other manganese and its products are to be put into license management package in 2007. The manganese market is likely to fluctuate on the issue of the new policy.Asian Metal CopyrightAs most foreign buyers are still absent from the market, coupled with the New Year holiday in China, the manganese market is expected to keep quiet in the short term.Asian Metal Copyright

The manganese industry has achieved significant progress in the past decade, however, accompanied by many problems such overcapacity, malicious competition, serious pollution, etc. In recent years, Chinese government has been strengthening macro-control on high energy-consuming, resource-intensive and environmentally-harmful metals by promulgating entry standards of industries, reducing or removing export tax rebate and imposing export tariff of those metals.Asian Metal Copyright The manganese market is likely to fluctuate on the issue of the new policy.Asian Metal Copyright

China cancelled the 13% export tax rebate on manganese on Aug 1st, 2005, and imposed 15% export tariff on Nov 1st, 2006. The manganese export market came to a halt after the imposition of export tariff as Chinese sellers and overseas buyers could not reach an agreement on the new price.Asian Metal CopyrightChina cancelled the 13% export tax rebate on manganese on Aug 1st, 2005, and imposed 15% export tariff on Nov 1st, 2006.Asian Metal Copyright Many signed contracts were left unsettled thereby. But with the approaching of the end of year, foreign buyers started to accept higher offers, and the export prices rose from USD1,260-1,280/t FOB late Oct to USD1,500-1,550/t FOB.Asian Metal CopyrightThe manganese industry has achieved significant progress in the past decade, however, accompanied by many problems such overcapacity, malicious competition, serious pollution, etc.Asian Metal Copyright However, the export market fell stagnant again as exporters raised offers sharply in line with the soaring domestic prices caused by the severe shortage of manganese carbonate ore in Huayuan, Hunan and Xiushan, Chongqing. Many exporters offered USD1,750-1,800/t FOB without receiving any response from foreign buyers.Asian Metal Copyright However, with the implementing of the new policy concerning export license, Chinese suppliers will probably take the chance to raise offers further, resulting in another round of price war in manganese market.Asian Metal Copyright

As most foreign buyers are still absent from the market, coupled with the New Year holiday in China, the manganese market is expected to keep quiet in the short term. However, with the implementing of the new policy concerning export license, Chinese suppliers will probably take the chance to raise offers further, resulting in another round of price war in manganese market.