Manganese market starts to decrease in China and more South Korean buyers decide to delay purchasing. Though there are still some deals concluded, the price is mostly not very attractive.
"It seems the suppliers are not very optimistic,' said a South Korean trader who has no intention of purchasing in the near term as the market is not very stable yet. The source reported that the offer they received recently dropped to about USD2,700/t FOB China.
AHowever, some traders also expect the price to rebound again after the summer holiday ends next month. The supply is very tight in European and Japanese market due to the decreasing export from china. "And as the economy recovers, more buyers may return to the market in September, and as a result, some suppliers are reluctant to sell now.
A trader reported to Asian Metal that they made a deal at USD2,750/t CIF Pusan this month while the offer drops from above USD2,800/t FOB due to the increasing supply and decreasing demand in China. "Some large smelters insist on USD2,800/t FOB as they have already booked the output in early September and needs not worry about the near future," said the source.
The source claimed that those who just resumed or started new projects would have to lower their prices to attract the limited deals. Though the market may be more active after the summer holiday, demand is not as sure to increase soon especially when the economy trend remains unclear in Europe, Japan and other major consumer markets. The source reports that most buyers only purchase in small quantities of about one to two cargos.
Another South Korean trader reported to Asian Metal that they made no deal of manganese flakes this month while demand from the downstream consumer market remains unclear. "Especially when the price keeps dropping in China, we expect lower prices in the coming weeks and the buyers decide to wait for some while," said the source, who received an offer of USD2,750/t FOB early this month. The source purchases about 20-40 tons of manganese powder from China monthly.
As the price is unstable, more buyers are watching the market, feeling reluctant to return soon especially when demand is not expected to recover soon in September.