Manganese market still oversupplied

BEIJING (Asian Metal) 15 Oct 08 - Manganese market sees less demand and lower prices as buyers still have not gained confidence towards the future market. Most participants expect the price to drop to around RMB12,000/t (USD1,757/t) ex works in domestic market as the market is still oversupplied.Asian Metal Copyright The source claimed that some smelters are ready to leave the market and they are in a hurry to collect money back even though they have to lower their prices to below RMB14,000t USD2,050t ex works to conclude a deal.Asian Metal Copyright

A Hunan-based smelter with only one of the two production lines running during the last one month suspended production this week) and keeps a stock of around 100t at hand. "Now manganese price has already been lower than our production cost of around RMB14,500/t (USD2,123/t) ex works, " said the source who has no manganese ore to maintain the production.

The source claimed that some smelters are ready to leave the market and they are in a hurry to collect money back even though they have to lower their prices to below RMB14,000/t (USD2,050/t) ex works to conclude a deal. "The future is very dull for manganese market while the total economic situation is still shaking due to the financial crisis in the global market.Asian Metal Copyright Most participants expect the price to drop to around RMB12,000t USD1,757t ex works in domestic market as the market is still oversupplied.Asian Metal Copyright Moreover, the Chinese smelters would be in need of cash to prepare for the new year.Asian Metal Copyright "The concluded price would be better while the market price keeps dropping and we only need to focus on the production once the contracts are fixed," said the source who reported that some deals were concluded at around RMB14,000-14,300t USD2,050-2,094t ex works this week and the price seems still beyond the bottom line.Asian Metal Copyright"

Another major smelter in Guizhou told Asian Metal that they are beneficial from the long-term contracts signed quarterly with the customers. "The concluded price would be better while the market price keeps dropping and we only need to focus on the production once the contracts are fixed," said the source who reported that some deals were concluded at around RMB14,000-14,300/t (USD2,050-2,094/t) ex works this week and the price seems still beyond the bottom line.Asian Metal Copyright".Asian Metal Copyright "However, as manganese price drops day by day, many buyers are only ready to purchase from the spot market.Asian Metal Copyright "The concluded price would be better while the market price keeps dropping and we only need to focus on the production once the contracts are fixed," said the source who reported that some deals were concluded at around RMB14,000-14,300t USD2,050-2,094t ex works this week and the price seems still beyond the bottom line.Asian Metal Copyright"

The source claimed that manganese production cost is also dropping but not as sharply as that of manganese price and there is a time lag for the smelters to get the cheaper raw materials. "Many smelters are suffering losses.Asian Metal CopyrightBEIJING Asian Metal 15 Oct 08 - Manganese market sees less demand and lower prices as buyers still have not gained confidence towards the future market.Asian Metal Copyright" The source believes that more smelters would halt production in the rest of the year. "Some of them are eager to empty stocks and thus they sell off the materials at hand at much lower prices below RMB14,000/t (USD2,050/t) ex works."