European manganese market in mist
2006-11-06 11:42:26 【Print】
BEIJING (Asian Metal) 6 Nov 06 – As Chinese government started to impose 15% on manganese metals from November 1st, European market participants received higher offers, but with the negotiations on the way, the market is in mist.
“My crystal ball is broken for the future of manganese market,” said a central European trader and revealed to Asian Metal that the latest offers he received from China are at around USD1,500/t CIF Rotterdam, but he thinks no deal would be concluded at such high prices as the consumers will not accept such high prices.
In the last few days, market participants were busy to renegotiate contracts, and some materials are supposed to be shipped in early November are postponed as the Chinese suppliers had to discuss to raise the price.
“I pity the Chinese producers that no one really expected this to happen this soon,” the trader claimed that everyone he knows thought the export duty would start with 5% on the January 1st, 2007. “This is like lightening to all the people.”
Another trader reported that he received higher offers at USD1,450-1,500/t in warehouse Rotterdam, “This is impossible for the deal to be concluded, and the price will gradually go back to USD1,350-1,380/t.” Commenting on the stockpile in Rotterdam, the source said: “there is always enough material in Rotterdam.”
The source holds that the Chinese suppliers will have to bear the whole 15% export duty and the price will start sliding very soon. “When the suppliers find they could not make any sales, they have to lower the price.”
He expected the price of selenium to come down very soon, and then there will be some room for the manganese cost to go down, and manganese metals will definitely come down as well.
Besides the prices mentioned above, European market participants received offers in vast range of USD1,500-1,600/t CIF Rotterdam, and many of them are holding back from market activities and waiting the market to step out from the fog.
