Manganese ore still against pressures in China
2006-12-22 08:54:21 【Print】
BEIJING (Asian Metal) 22 Dec 06 – Traders informed Asian Metal that the manganese ore market is still against heavy pressures in China, as Chinese consumers cut down demand during the fourth quarter.
Some major traders have frowned toward sluggish demand on the spot market while some others are more optimistic as large consumers continue their normal purchasing. A market observer told that as Chinese manganese alloys industry entered the dry season, Mn ore demand on the spot market surely stepped into a low season, because numbers of minor smelters especially those that rely much on hydro power.
While dead demand on the spot market remains common during the fourth quarter, international mainstream price increases did not influence Chinese Mn ore prices much. Though international producers hiked price by CENT10-15/dmtu in late September, similar increase did not take place in China until early November. Market participants attributed this delay to old stockpiles in Chinese ports.
Currently, hundreds of thousands ton of Mn ore stockpiles are available on main ports, such as Zhanjiang, Lianyungang and Tianjin. The stockpiles would be heavy pressure for further price increase in the near future.
So far, too many dealers have quit from Mn ore trading field mainly due to the fluctuating development on the market. Most survivors in the field have developed rather stable relationship with Chinese consumers and international suppliers.
