Manganese flake market remains low
2007-11-27 11:36:20 【Print】
BEIJING (Asian Metal) 27 Nov 07 – The manganese flake market has kept comparatively stable since late last week with prices lingering at RMB16,400-16,700/t (USD2,219-2,260/t) ex works. However, the market now faces the danger of further price softening, market sources reported to Asian Metal today.
A Guangdong-based trader received offers of around RMB16,500-16,600/t (USD2,233-2,246/t) ex works yesterday. “But we’re confident to obtain the material at RMB16,400/t (USD2,219/t) ex works,” said the source, adding that some producers who are under great pressure of turnover reportedly undersold material at lower prices.
According to the source, many small scaled mills for 200 series stainless steel in Jiangsu and Zhejiang provinces reduced or even halted production in the past two months due to the bearish market, thus decrease the consumption of raw materials including manganese flake.
The source sold only 50-60t of manganese flake in the past two weeks as few consumers were interested in buying.
A Hunan-based trader, who usually exports 600-700tpm of manganese flake, confirmed that the manganese flake market keeps quiet and slow currently with some signs showing for further price decrease. The source did not conclude any deals in the past week as market demand kept low. “We’re fulfilling some export contracts signed at above USD3,000/t FOB,” said the source.
The source revealed that many overseas buyers hold back from purchasing, aiming at lower prices. “One of the European buyers insisted on buying at a price below USD2,800/t FOB CMP, but USD2,800/t FOB is our bottom line,” said the source.
With the Christmas approaching, western buyers should have begun purchasing for next year’s production. However, the demand still shows no signs of recovery. However, the source worries that the market is likely to move down slightly in the following weeks given the fact that demand from overseas market keeps weak.
A Guangdong-based trader received offers of around RMB16,500-16,600/t (USD2,233-2,246/t) ex works yesterday. “But we’re confident to obtain the material at RMB16,400/t (USD2,219/t) ex works,” said the source, adding that some producers who are under great pressure of turnover reportedly undersold material at lower prices.
According to the source, many small scaled mills for 200 series stainless steel in Jiangsu and Zhejiang provinces reduced or even halted production in the past two months due to the bearish market, thus decrease the consumption of raw materials including manganese flake.
The source sold only 50-60t of manganese flake in the past two weeks as few consumers were interested in buying.
A Hunan-based trader, who usually exports 600-700tpm of manganese flake, confirmed that the manganese flake market keeps quiet and slow currently with some signs showing for further price decrease. The source did not conclude any deals in the past week as market demand kept low. “We’re fulfilling some export contracts signed at above USD3,000/t FOB,” said the source.
The source revealed that many overseas buyers hold back from purchasing, aiming at lower prices. “One of the European buyers insisted on buying at a price below USD2,800/t FOB CMP, but USD2,800/t FOB is our bottom line,” said the source.
With the Christmas approaching, western buyers should have begun purchasing for next year’s production. However, the demand still shows no signs of recovery. However, the source worries that the market is likely to move down slightly in the following weeks given the fact that demand from overseas market keeps weak.
