23 Jul 08 - As manganese supply is decreasing while demand from the processing plants goes up, manganese suppliers raised their offers significantly to RMB21,500/t (USD3,148/t) ex works. However, just few deals are concluded at around RMB21,000/t (USD3,075/t) ex works. Sources reported that the demand is not stable as the stainless steel mills are not back to the market, and manganese price might fall again.

A Hunan-based smelter now just keeps a small stock at hand but is reluctant to sell. "We received many inquiries this week. The manganese supply is decreasing and many LC FeMn and briquette producers fail to find enough manganese flakes," said the source who just raised their offer to RMB21,500/t (USD3,148/t) ex works but has made no deals at the price level.

The source claimed that the power supply is very tight at the moment. "Many areas are rationing power, which lowers the output of manganese." The source also received some inquiries from foreign buyers. "But the customers are reluctant to purchase, claiming the offers of USD3,900-3,950/t FOB too high for them."

Another Hunan-based smelter also keeps some cargos of manganese at hand. “We offered RMB21,000-21,300/t (USD3,075-3,119/t) ex works," said the source who claimed that many smelters are holding back from selling at low prices. "However, few deals are concluded at the higher offer." The source claimed that many smelters are still running, which can support the current demand of the market. The source claimed that many smelters are watching and raising their offers as they are optimistic about the future market.

However, the source is not so confident. "Demand of manganese from the downstream stainless steel mills in both domestic and foreign markets is still dull while most buyers today are from the processing factories," said the source who believes the manganese market is not stable. He claimed that the briquette exportation will slide if the Chinese government adds to some export duty to the product, and demand of manganese flakes would be weaker, leading to lower manganese price as a result. The source is willing to sell some material if the price is workable.