BEIJING (Asian Metal) 6 May 09 - Manganese offers increase by RMB100-200/t (USD15-29/t) as more inquiries are received. Sources reported that manganese supply in spot market is a bit tight and suppliers start to raise their offers.
A Hunan-based smelter offering RMB12,500/t (USD1,833/t) ex works told Asian Metal that they could sell the material at RMB12,400/t (USD1,818/t) ex works. "As the downstream market warms a bit and buyers start to inquire for the material, the situation is better in China now," said the source who has no stocks at hand for the moment.
The source claimed that as the production is very low in China, it is a bit difficult to replenish too much material in the spot market. "It will be normal for the price to increase by RMB50-150/t (USD8-22/t) if you need some materials for prompt delivery."
AHowever, the source thinks it can be impossible for manganese price to increase too much while the downstream industry remains a bit stagnant and no one is quite confident about the market in the coming months, especially when export market hardly improves.
A branch of a Japanese based buyer located in North China told Asian Metal that they have stayed away from the market for over two months due to the weak demand in Japan. "There were only some very small inquiries of about 20-50 tons in the last few months. And the concluded price is also a bit low," said the source, who doubts whether the price could go up this time while right before the May Day, manganese price slid soon after it rose above RMB13,000/t (USD1,906/t) ex works.
While the supply is also not very sufficient, the source claimed that it is also difficult for the price to slide too much in the coming weeks. "We think the price would go stable at about RMB12,500/t (USD1,833/t) ex works this month."