Manganese prices skyrocketing
2007-03-09 09:24:36 【Print】
BEIJING (Asian Metal) 9 Mar 07 – Tight supply in the global manganese market leads to panic purchasing which is stimulating the market to rise further. Many Chinese suppliers suspend export quotation due to high risk despite that inquiries from the international market are pouring in.
“The manganese flake market has been strengthening with prices climbing up to current RMB12,650-12,800/t (USD1,634-1,654) ex works from RMB12,000-12,100/t (USD1,550-1,563/t) ex works at the end of the Spring Festival,” a Hunan-based producer said to Asian Metal today. “Furthermore, the market is showing no sign of slowing down as every smelter is asking for higher prices at the moment.”
With a capacity of 10,000tpy, the smelter halted production before the Spring Festival due to the market fluctuation. But it makes considerable profit by distributing manganese carbonate ore from its own mines in Huayuan, Hunan. According to the source, manganese carbonate powder grading 18% is changing hands at around RMB720/t (USD93/t) delivered to plants, RMB50-60/t (USD6.5-7.8/t) higher than that before the Spring Festival. “Therefore, manganese flake smelters have to raise offers to offset the increased production cost,” the source added.
Meanwhile, sources reported that the export market for manganese flake keeps going up prompted by strong demand from the international market. As limited materials are available in European and U.S spot market and fewer quantities are to be delivered from China, many consumers are searching for materials for the production of the second quarter, and traders are eager to buy as well to fulfill the signed contracts.
“We signed several contracts with prices ranging USD2,080-2,130/t FOB with long-term buyers over the past week, and few suppliers will conclude deals below USD2,100/t FOB,” a Hunan-based trader said.
Meanwhile, another trader revealed to concluded a deal at USD2,190/t FOB lately, adding that the market still keeps strong.
According to the source, the export market is skyrocketing. Many exporters are offering as high as USD2,200/t FOB, though foreign buyers find it hard to accept such a high price. However, with the price in Chinese local market climbing up higher, the export market is bound to rise accordingly in the near future.
“The manganese flake market has been strengthening with prices climbing up to current RMB12,650-12,800/t (USD1,634-1,654) ex works from RMB12,000-12,100/t (USD1,550-1,563/t) ex works at the end of the Spring Festival,” a Hunan-based producer said to Asian Metal today. “Furthermore, the market is showing no sign of slowing down as every smelter is asking for higher prices at the moment.”
With a capacity of 10,000tpy, the smelter halted production before the Spring Festival due to the market fluctuation. But it makes considerable profit by distributing manganese carbonate ore from its own mines in Huayuan, Hunan. According to the source, manganese carbonate powder grading 18% is changing hands at around RMB720/t (USD93/t) delivered to plants, RMB50-60/t (USD6.5-7.8/t) higher than that before the Spring Festival. “Therefore, manganese flake smelters have to raise offers to offset the increased production cost,” the source added.
Meanwhile, sources reported that the export market for manganese flake keeps going up prompted by strong demand from the international market. As limited materials are available in European and U.S spot market and fewer quantities are to be delivered from China, many consumers are searching for materials for the production of the second quarter, and traders are eager to buy as well to fulfill the signed contracts.
“We signed several contracts with prices ranging USD2,080-2,130/t FOB with long-term buyers over the past week, and few suppliers will conclude deals below USD2,100/t FOB,” a Hunan-based trader said.
Meanwhile, another trader revealed to concluded a deal at USD2,190/t FOB lately, adding that the market still keeps strong.
According to the source, the export market is skyrocketing. Many exporters are offering as high as USD2,200/t FOB, though foreign buyers find it hard to accept such a high price. However, with the price in Chinese local market climbing up higher, the export market is bound to rise accordingly in the near future.
