European manganese flake downward correction continues
2012-04-23 15:52:37 [Print]
LONDON (Asian Metal) 20 Apr 12- European sources, despite experiencing a tight supply for the material, traders reported a further decline in figures after a drop of USD20/t saw on Tuesday. Market participants expect the price to continue falling next week, with a possibility of reaching USD3,050/t in warehouse Rotterdam, as traders are concerned about the potential significant dive in prices should material start arriving in Europe in May.
The current price for European manganese flake 99.7%min is between USD3,080-3,130/t in warehouse Rotterdam, a further USD20/t decrease recorded after Tuesday falls. European sources, who believe the tight supply will remain until at least the end of April, believe the downward correction movements seen in the last three days are credited to the reduced offering figures from Chinese manganese flake suppliers and the weak demand from end users.
A manganese flake end users, who is based in Central Europe, told Asian Metal that he has no urgent need to replenish his stock as he still holds sufficient material for his production. The source, who heard some enquiries for European manganese flake 99.7% at EUR3,100-3,200/t in warehouse Rotterdam in the past few days, stated that he is unlikely to return to the market until the price drops below USD3,000/t in warehouse Rotterdam and believes the domestic demand for the material in both Europe and China is weak.
“The domestic demand for the material is weak, and the fundamentals are not supporting the current high price,” the source said, “however, I do also know that end users who purchased material last week at EUR3,160/t in warehouse Rotterdam because they need the material for prompt delivery.”
A Central European based trader, who deals with Chinese origin material, quoted a price for European manganese flake at either side of EUR3,100/t in warehouse Rotterdam. The source, who credits the appreciation to the increased inter-trade businesses, believes that the current market is supported solely by inter-trade transactions as he understands that many end users are waiting for the price to stabilise in May before purchasing material. The source warned that, despite the material may not arrive in Rotterdam by the end of May, it is possible to purchase export duty paid material from Chinese suppliers, who were driven out and are eager to re-enter the European market, for EUR3,100-3,120/t CIF Rotterdam, which could then be sold at EUR3,150-3,180/t in warehouse Rotterdam.
“Because Chinese suppliers are eager to return to the European, they have been decreasing their quotes rapidly in order to attract some European buyers,” the trader commented, “and I know some traders have bought material that should arrive in Rotterdam in May.”
The current price for European manganese flake 99.7%min is between USD3,080-3,130/t in warehouse Rotterdam, a further USD20/t decrease recorded after Tuesday falls. European sources, who believe the tight supply will remain until at least the end of April, believe the downward correction movements seen in the last three days are credited to the reduced offering figures from Chinese manganese flake suppliers and the weak demand from end users.
A manganese flake end users, who is based in Central Europe, told Asian Metal that he has no urgent need to replenish his stock as he still holds sufficient material for his production. The source, who heard some enquiries for European manganese flake 99.7% at EUR3,100-3,200/t in warehouse Rotterdam in the past few days, stated that he is unlikely to return to the market until the price drops below USD3,000/t in warehouse Rotterdam and believes the domestic demand for the material in both Europe and China is weak.
“The domestic demand for the material is weak, and the fundamentals are not supporting the current high price,” the source said, “however, I do also know that end users who purchased material last week at EUR3,160/t in warehouse Rotterdam because they need the material for prompt delivery.”
A Central European based trader, who deals with Chinese origin material, quoted a price for European manganese flake at either side of EUR3,100/t in warehouse Rotterdam. The source, who credits the appreciation to the increased inter-trade businesses, believes that the current market is supported solely by inter-trade transactions as he understands that many end users are waiting for the price to stabilise in May before purchasing material. The source warned that, despite the material may not arrive in Rotterdam by the end of May, it is possible to purchase export duty paid material from Chinese suppliers, who were driven out and are eager to re-enter the European market, for EUR3,100-3,120/t CIF Rotterdam, which could then be sold at EUR3,150-3,180/t in warehouse Rotterdam.
“Because Chinese suppliers are eager to return to the European, they have been decreasing their quotes rapidly in order to attract some European buyers,” the trader commented, “and I know some traders have bought material that should arrive in Rotterdam in May.”
Manganese Flake 99.7%min In warehouse Rotterdam
Unit:USD/mt
China's manganese flake producers' operating rate statistics by province by month
Unit: %
