Monthly Manganese Flake Market Report Aug 2019
2019-09-12 17:50:49 【Print】
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1. Market Highlights
With a continuously high operating rate, Chinese manganese flake producers suffered great inventory pressure from late July to early August and had high desire for selling. In early August, Chinese and overseas steel mills released bidding results for manganese flake successively and all purchase prices dropped dramatically MOM, which were much lower than market price in terms of EXW prices, so upstream suppliers and downstream customers held an increasingly pessimistic attitude towards market outlook. In the middle of this month, Tianyuan Manganese delivered a large number of spot material to South China and transaction prices for manganese flake 99.7%min went down rapidly to around RMB11,700/t (USD1,649/t) from RMB12,500/t (USD1,761/t) EXW D/P. Manganese flake producers held heavy stocks and cut prices for the material in succession to sell inventories and recoup funds. In late August, transaction prices for manganese flake 99.7%min rested at around RMB11,200/t (USD1,578/t) and those for futures stayed at RMB10,800-11,000/t (USD1,522-1,550/t). Downstream customers placed a large number of orders at such prices to execute downstream order or rebuild stocks, resulting in lower inventory pressure. As manganese flake prices were close to production cost of major producers, some Chinese producers suffered losses. With less inventory pressure, Chinese producers adjusted mental attitudes gradually, held back from selling and slightly raise offers to around RMB11,400/t (USD1,606/t). At the end of the month, Baosteel released the bidding result for manganese flake 99.7%min and the purchase price was less than RMB11,000/t (USD1,550/t) in terms of EXW price, so manganese flake prices showed a downtrend again.
In export market, most overseas customers were pessimistic about market outlook due to the high operating rate of Chinese manganese flake producers and squeezed down on prices with a wait-and-see attitude. As manganese flake prices declined sharply in Chinese market, export prices for the material moved down accordingly.
Generally speaking, prices for Chinese manganese went down dramatically in August. By late August, mainstream transaction prices for Chinese manganese flake 99.7%min were RMB11,100-11,300/t (USD1,564-1,592/t) EXW D/P, down by RMB1,600/t (USD225/t) from late July. The market last saw the same low prices in early April of 2018.
With a continuously high operating rate, Chinese manganese flake producers suffered great inventory pressure from late July to early August and had high desire for selling. In early August, Chinese and overseas steel mills released bidding results for manganese flake successively and all purchase prices dropped dramatically MOM, which were much lower than market price in terms of EXW prices, so upstream suppliers and downstream customers held an increasingly pessimistic attitude towards market outlook. In the middle of this month, Tianyuan Manganese delivered a large number of spot material to South China and transaction prices for manganese flake 99.7%min went down rapidly to around RMB11,700/t (USD1,649/t) from RMB12,500/t (USD1,761/t) EXW D/P. Manganese flake producers held heavy stocks and cut prices for the material in succession to sell inventories and recoup funds. In late August, transaction prices for manganese flake 99.7%min rested at around RMB11,200/t (USD1,578/t) and those for futures stayed at RMB10,800-11,000/t (USD1,522-1,550/t). Downstream customers placed a large number of orders at such prices to execute downstream order or rebuild stocks, resulting in lower inventory pressure. As manganese flake prices were close to production cost of major producers, some Chinese producers suffered losses. With less inventory pressure, Chinese producers adjusted mental attitudes gradually, held back from selling and slightly raise offers to around RMB11,400/t (USD1,606/t). At the end of the month, Baosteel released the bidding result for manganese flake 99.7%min and the purchase price was less than RMB11,000/t (USD1,550/t) in terms of EXW price, so manganese flake prices showed a downtrend again.
In export market, most overseas customers were pessimistic about market outlook due to the high operating rate of Chinese manganese flake producers and squeezed down on prices with a wait-and-see attitude. As manganese flake prices declined sharply in Chinese market, export prices for the material moved down accordingly.
Generally speaking, prices for Chinese manganese went down dramatically in August. By late August, mainstream transaction prices for Chinese manganese flake 99.7%min were RMB11,100-11,300/t (USD1,564-1,592/t) EXW D/P, down by RMB1,600/t (USD225/t) from late July. The market last saw the same low prices in early April of 2018.
