24 Jul 08 - Manganese market is warming up gradually in China. Sources reported that the supply is not quite sufficient while more buyers return to purchase. Many exporters are holding back from selling at low prices and raise their offers to USD3,900-3,950/t FOB.

A Hunan-based smelter who keeps about 200t of stocks told Asian Metal that they would not sell the material at prices lower than USD3,950/t FOB. "We receive more inquiries at the moment and believe demand of he material would be stronger in the coming August," said the source who said that most European buyers are still on vacation and they have to wait for a while before demand goes stronger.

The source claimed that many domestic suppliers just keep very low stockpiles as they cut down production due to the low market in June and early July. "The export market usually goes lower in summer and rebounds in September," said the source who has delivered some materials to foreign markets in advance.

Another Guangxi-based smelter running at about two thirds of their capacity was ready to sell the material at USD3,850/t FOB early this week but now they changed their mind. "We find more buyers back to the market for the material to be delivered in late August or early September," said the source who claimed that many buyers are in a hurry to purchase for fear that the export duty might be raised again. "We offer USD3,950-4,000/t FOB for the moment."

However, the source failed to conclude a deal at such a high price. "Many buyers are not ready for the higher prices," said the source who is confident that the price will be accepted with the manganese price gradually moving up in foreign markets.