Manganese price drops to around RMB18,400-18,700/t (USD2,702-2,746/t) ex works from around RMB18,700-19,000/t (USD2,746-2,790/t) ex works due to the weak demand. Sources reported that there can barely be an inquiry from domestic buyers.
A Hunan-based trader reported to Asian Metal that they can easily purchase manganese flakes from local smelters at prices of around RMB18,500/t (USD2,717/t) ex works. "Most smelters are still not optimistic about the futuer market after they are cut down the production," said the source who claimed that some smelters with much material in stock would rather halt temporarily due to the tight cash turnover or the worry that the market might be very dull in the rest of the year.
As demand from the downstream consumers is also low, the source has no intention of stocking much material. "The price might drop further in the coming months while the overall economy is also in bad shape." The source expects manganese price to drop to below RMB18,000/t (USD2,643/t) ex works though more smelters are ready to cut down or halt production.
Another Hunan-based smelter running at half capacity of 18,000tpy told Asian Metal that they received more inquiries recently but few deals were concluded. "The buyers keep pressing the price down. No one has clear ideas on the future market and thus the buyers are very reluctant to place orders before the market drops to the bottom line," said the source who is ready to sell at RMB18,600/t (USD2,731/t) ex works.
The source is afraid that manganese price might drop further if the buyers stay out of the market. "Many smelters would wait some while for the market to rebound early the month when manganese price dropped but now they are hurry to empty their stocks while the chance for manganese market to rebound is very slim."
Some major stainless steel mills lowered the prices of stainless steels and they might also cut down the production in face of the narrowing market. Manganese demand might be weaker after September and the price will continue to drop.