Domestic manganese price down
2006-11-03 11:10:47 【Print】
BEIJING (Asian Metal) 3 Nov 06 – As the export market of manganese metal comes to a standstill owing to the imposition of export tax, domestic market is facing with increasing pressure with more suppliers turning their attention to the domestic market. According to the source, concluded prices of manganese flake experienced a decrease of around RMB100/t compared to levels early this week.
A few deals were reportedly concluded at lower prices of around RMB9,700/t(USD1,231/t) ex works yesterday, and the market seems to be at its slightly downward trend affected by surplus materials.
“I didn’t conclude any deals in the past two days, but I heard that some suppliers have begun to sell at lower price of around RMB9,700/t(USD1,231/t) ex works whereas the prevailing price early this week was at around RMB9,800-9,850/t(USD1,244-1,250/t) ex works,” said the source.
The source attributed the price decline to the stagnant export market which is witnessing no business taking place due to the tax regulation. “I’m afraid that it will take at least two weeks for the export market to return to normal. During this period, the domestic market is bound to worsen with more suppliers involving in and cutting each other down for more market share,” said the source.
According to the source, manganese smelters are pushed into predicament as some regions have adopted higher electricity prices. Additionally, supply of manganese carbonate powder in some major producing areas tightens on account of the macro-control taken by relevant bureau against mine safety, imposing more pressure on manganese smelters.”
Another Guizhou-based producer confirmed that the domestic market is in decline with more supply and less demand. ”We even found it difficult to sell at RMB10,000/t(USD1,269/t) delivered to ports as consumers claimed that they could easily get materials at the spot market,” said the source.
The smelter is running at its full capacity of 8,000tpy without stocks on hand. “With power supply tightening due to the dry-season, combined with the sluggish market condition, more smelters will choose to halt production,” the source added.
A few deals were reportedly concluded at lower prices of around RMB9,700/t(USD1,231/t) ex works yesterday, and the market seems to be at its slightly downward trend affected by surplus materials.
“I didn’t conclude any deals in the past two days, but I heard that some suppliers have begun to sell at lower price of around RMB9,700/t(USD1,231/t) ex works whereas the prevailing price early this week was at around RMB9,800-9,850/t(USD1,244-1,250/t) ex works,” said the source.
The source attributed the price decline to the stagnant export market which is witnessing no business taking place due to the tax regulation. “I’m afraid that it will take at least two weeks for the export market to return to normal. During this period, the domestic market is bound to worsen with more suppliers involving in and cutting each other down for more market share,” said the source.
According to the source, manganese smelters are pushed into predicament as some regions have adopted higher electricity prices. Additionally, supply of manganese carbonate powder in some major producing areas tightens on account of the macro-control taken by relevant bureau against mine safety, imposing more pressure on manganese smelters.”
Another Guizhou-based producer confirmed that the domestic market is in decline with more supply and less demand. ”We even found it difficult to sell at RMB10,000/t(USD1,269/t) delivered to ports as consumers claimed that they could easily get materials at the spot market,” said the source.
The smelter is running at its full capacity of 8,000tpy without stocks on hand. “With power supply tightening due to the dry-season, combined with the sluggish market condition, more smelters will choose to halt production,” the source added.
