Manganese flake market continues to slip
2007-06-15 10:01:23 【Print】
BEIJING (Asian Metal) 15 Jun 07 – Manganese flake market slips to a lower level, albeit slowly. Industry insiders predict that the market might continue to move down slowly in the coming week.
“The lowest offer we received yesterday was RMB30,000/t (USD3,932/t) ex works while most of others still insisted on quotations of RMB30,500-31,000/t (USD3,997-4,063/t) ex works,” said a Shaanxi-based Mn3O4 producer who consumes around 1,000tpm of manganese flake.
According to the source, the company did not purchase large quantities of manganese flake after the price exceeded RMB30,000/t (USD3,932/t) ex works as it could gain materials tied by long-term contracts signed at lower prices. “We believe the price will not last long at current high level which keeps many consumers away,” said the source.
Another trader from Hunan confirmed that the market has been in a period of adjustment during the week with prices softening from RMB32,000-32,500/t (USD4,194-4,260/t) ex works to current RMB30,500-31,000/t (USD3,997-4,063/t) ex works. Although some smelters still hold offers of around RMB31,000/t (USD4,063/t) ex works, others have started making unsolicited offer of RMB30,500/t ex works or lower prices for fear that the market might drop further.
The source confirmed that many stainless steel mills in China slow down purchasing after the price breached RMB30,000/t (USD3,932/t) ex works at the end of May, which imposes pressure on the high-held price. “Therefore, the price decrease is not beyond our expectation,” said the source.
Industry insiders think that the manganese flake market is getting back on the rational track after experiencing a dramatically price increase in the past six months. Other than the slowdown of demand, the price retreat of nickel is considered to be another key factor for the price drop of manganese flake. Most participants anticipate lower prices of the metal in the following week, but a price crash can be ruled out.
“The lowest offer we received yesterday was RMB30,000/t (USD3,932/t) ex works while most of others still insisted on quotations of RMB30,500-31,000/t (USD3,997-4,063/t) ex works,” said a Shaanxi-based Mn3O4 producer who consumes around 1,000tpm of manganese flake.
According to the source, the company did not purchase large quantities of manganese flake after the price exceeded RMB30,000/t (USD3,932/t) ex works as it could gain materials tied by long-term contracts signed at lower prices. “We believe the price will not last long at current high level which keeps many consumers away,” said the source.
Another trader from Hunan confirmed that the market has been in a period of adjustment during the week with prices softening from RMB32,000-32,500/t (USD4,194-4,260/t) ex works to current RMB30,500-31,000/t (USD3,997-4,063/t) ex works. Although some smelters still hold offers of around RMB31,000/t (USD4,063/t) ex works, others have started making unsolicited offer of RMB30,500/t ex works or lower prices for fear that the market might drop further.
The source confirmed that many stainless steel mills in China slow down purchasing after the price breached RMB30,000/t (USD3,932/t) ex works at the end of May, which imposes pressure on the high-held price. “Therefore, the price decrease is not beyond our expectation,” said the source.
Industry insiders think that the manganese flake market is getting back on the rational track after experiencing a dramatically price increase in the past six months. Other than the slowdown of demand, the price retreat of nickel is considered to be another key factor for the price drop of manganese flake. Most participants anticipate lower prices of the metal in the following week, but a price crash can be ruled out.
