Monthly Manganese Flake Market Report Oct 2018
2018-11-13 17:43:36 【Print】
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1. Market Highlights
Prices edged down in early October with weak demand as most Chinese downstream customers completed purchases in late September. In mid-October, market participants were pessimistic about market outlook as Tianyuan Manganese increased output and manganese plants in Songtao of Guizhou would resume production. In the meanwhile, Nanjing Iron & Steel opened bidding to purchase manganese lump and the final prices came out to be RMB16,950/t (USD2,435/t) delivered D/A six months while prices for manganese flake stood at around RMB16,800/t (USD2,413/t) in spot market. Based on experience in the previous three months, the purchase price of manganese lump should reach about RMB18,000/t (USD2,585/t), but the actual price was much lower than market expectation. Undoubtedly, the bidding result aggravated the tension in the market.
As Tianyuan Manganese confirmed production resumption of its old plant and plants in Songtao of Guizhou were likely to resume production, downstream customers waited on the sidelines and made scarce transactions. During this period, POSCO opened November's bidding to purchase manganese flake and the final price was still lower than expected. As a result, prices went down further. On 31 October, Guizhou Wuling Manganese, Sanhe Manganese, Kingray New Materials and Huifeng Manganese were allowed to resume production. Prices for manganese flake kept going down in Chinese market and competition got fiercer in export market, resulting in stepped drop of FOB prices.
On the whole, prices for manganese flake 99.7%min moved down dramatically from RMB17,500-17,700/t (USD2,514-2,542/t) EXW D/P of early this month to RMB15,400-15,600/t (USD2,212-2,241/t), down by RMB2,100/t (USD302/t).
Prices edged down in early October with weak demand as most Chinese downstream customers completed purchases in late September. In mid-October, market participants were pessimistic about market outlook as Tianyuan Manganese increased output and manganese plants in Songtao of Guizhou would resume production. In the meanwhile, Nanjing Iron & Steel opened bidding to purchase manganese lump and the final prices came out to be RMB16,950/t (USD2,435/t) delivered D/A six months while prices for manganese flake stood at around RMB16,800/t (USD2,413/t) in spot market. Based on experience in the previous three months, the purchase price of manganese lump should reach about RMB18,000/t (USD2,585/t), but the actual price was much lower than market expectation. Undoubtedly, the bidding result aggravated the tension in the market.
As Tianyuan Manganese confirmed production resumption of its old plant and plants in Songtao of Guizhou were likely to resume production, downstream customers waited on the sidelines and made scarce transactions. During this period, POSCO opened November's bidding to purchase manganese flake and the final price was still lower than expected. As a result, prices went down further. On 31 October, Guizhou Wuling Manganese, Sanhe Manganese, Kingray New Materials and Huifeng Manganese were allowed to resume production. Prices for manganese flake kept going down in Chinese market and competition got fiercer in export market, resulting in stepped drop of FOB prices.
On the whole, prices for manganese flake 99.7%min moved down dramatically from RMB17,500-17,700/t (USD2,514-2,542/t) EXW D/P of early this month to RMB15,400-15,600/t (USD2,212-2,241/t), down by RMB2,100/t (USD302/t).
