20 Aug 08 - Manganese market remains generally dull in China but as more deals are concluded compared with earlier this month and the supply remains a bit tight, the suppliers keep raising their prices. More deals are concluded at around RMB20,800/t （USD3,032/t) ex works but due to the weak demand, the price might not keep rising.
A Guangxi-based supplier told Asian Metal that they just conclude a deal at RMB20,900/t (USD3,047/t) ex works. "The buyers are unwilling to accept RMB21,000/t (USD3,061/t) ex works for the moment but the price we got is already very high," said the source who reported that demand has been stronger these days. "Some downstream buyers have been back to order some materials and some traders are also about to replenish some stocks for fear that the price might go up in the coming months."
However, the source is not quite optimistic. "Demand remains weak in both domestic and foreign markets. And when more buyers have stocked some materaial, demand would cool down soon," said the source who belives the price might fall down in the near term. Their export price is stable at around USD3,900/t FOB. "We reached an agreement with a foreign buyer at the price of USD3,910/t late last week." The source still has some stocks at hand.
Another Hunan-based smelter still insist on the offer of RMB21,000/t (USD3,061/t) ex works at the moment. "More deals are concluded at the price of RMB20,800/t (USD3,032/t) ex works now but that of RMB21,000/t (USD3,061/t) ex works is still a bit high," said the source who has almost booked out the output this month.
The source claimed that the price hike is mainly due to two impulses. First, some stainless steel mills have been back to purchase the material for their production in the coming months. Second, the Olympics is about to come to an end and the players who expect the market to warm up with higher prices are ready to replenish some stocks before that. "The good expectation is pushing the suppliers to raise their offers," said the source.
However, the source is not quite optimistic about the market. "The price might fall down soon in the next week," said the source who belives that demand from foeign markets is still low and the overall market is on the decline this year.