Manganese market slightly rebounds

BEIJING (Asian Metal) 31 Aug 05 – As market participants anticipated, the manganese market saw slight rebound early this week since many manganese flake smelters in the main production bases have been forced to cease production.

According to market sources, over 2/3 of the smelters of manganese flake in Huayuan (Hunan) and Xiushan (Chongqing) have been compelled to lay off production due to the serious industrial pollution.

The action to protect the environment provides a chance for the manganese market to conduct an adjustment since it was greatly hit by the renminbi’s appreciation and the subsequent removal of the export tax rebate.

“We just sold a batch of materials at USD1,450/t FOB with delivery in September.” a Hunan-based producer said.Asian Metal Copyright” a Hunan-based producer said.Asian Metal Copyright “As many smelters have been forced to suspend production in order to control pollution, producers who are still in operation will of course raise their prices.Asian Metal Copyright”Without any environmental problems, the smelter is now running at its full production capacity of 900tpm.Asian Metal Copyright”

Another Chongqing-based producer reported that the domestic market is also in the same trend. “The current price in the region has advanced to around RMB11,500/t ex works for the moment,” said the source.Asian Metal Copyright ”Suppliers won’t sell at a price below such a level, believing the price has the potential of rising as more smelters will close down.Asian Metal Copyright ”Suppliers won’t sell at a price below such a level, believing the price has the potential of rising as more smelters will close down.Asian Metal Copyright “The current price in the region has advanced to around RMB11,500t ex works for the moment,” said the source.Asian Metal Copyright”

Without any environmental problems, the smelter is now running at its full production capacity of 900tpm.At present, most of its output is sold domestically.