24 Jul 08 - Manganese market is warming up gradually in China. Sources reported that the supply is not quite sufficient while more buyers return to purchase. Many exporters are holding back from selling at low prices and raise their offers to USD3,900-3,950/t FOB.

A Hunan-based smelter who keeps about 200t of stocks told Asian Metal that they would not sell the material at prices lower than USD3,950/t FOB. "We receive more inquiries at the moment and believe demand of he material would be stronger in the coming August," said the source who said that most European buyers are still on vacation and they have to wait for a while before demand goes stronger.

The source claimed that many domestic suppliers just keep very low stockpiles as they cut down production due to the low market in June and early July. "The export market usually goes lower in summer and rebounds in September," said the source who has delivered some materials to foreign markets in advance.

Another Guangxi-based smelter running at about two thirds of their capacity was ready to sell the material at USD3,850/t FOB early this week but now they changed their mind. "We find more buyers back to the market for the material to be delivered in late August or early September," said the source who claimed that many buyers are in a hurry to purchase for fear that the export duty might be raised again. "We offer USD3,950-4,000/t FOB for the moment."

However, the source failed to conclude a deal at such a high price. "Many buyers are not ready for the higher prices," said the source who is confident that the price will be accepted with the manganese price gradually moving up in foreign markets.

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.

23 Jul 08 – Last week, when more European traders accepted the lower prices and started to position for material, together with the tightening of supply as Chinese manganese smelters reduce production, market participants reported manganese flake prices have rose to USD4,000-4,100/t in warehouse Rotterdam, and Chinese offers have increased to the range of USD4,000-4,100/t CIF Rotterdam.

A European trader holds manganese flake prices have rose to the range of USD4,000-4,100/t in warehouse Rotterdam. He is also receiving Chinese offers in the range of USD4,000-4,100/t CIF Rotterdam.

He revealed to Asian Metal that he bought a few hundred tonnes of manganese flakes at USD3,900/t CIF Rotterdam end of last week. “I consider it a very good deal, because you cannot get material at prices as low as that now. Prices had reached the bottom last week.”

The source claimed that prices have shot up quickly from last to this week, "When more European traders booked for material at low prices, Chinese suppliers took the opportunity to raise price up again, claiming that their selling price can barely cover production cost. Chinese manganese smelters also claimed that due to many smaller smelters have closed down or reduced production, the tightening of supply has caused the price increase."

Another trader holds manganese flake prices to be in the range of USD4,000-4,100/t in warehouse Rotterdam. He is also receiving Chinese offers in the range of USD4,000-4,100/t CIF Rotterdam.
Asianmetal(English) http://www.asianmetal.com K2J3
He told Asian Metal that despite the increase in prices, the demand for manganese flakes from consumers is still very weak. "We have not received any inquiries at all, market is very quiet." However, he claimed that some traders including himself had replenished some stocks when prices reached very low levels in the last week.

23 Jul 08 - Manganese market in China is moving up gradually with more buyers ready to purchase. Sources reported to Asian Metal that the market still sees a tight supply and suppliers raise their prices to above RMB21,000/t (USD3,079/t) ex works.
Asianmetal(English) http://www.asianmetal.com 67U1
A Guangxi-based smelter running at half of its total capacity of 12,000tpy told Asian Metal that they receive more inquiries from domestic buyers. "Many downstream processing plants are eager to replenish some stocks while they find not much material is available at the moment," said the source who reported that some deals were concluded at RMB21,000-21,200/t (USD3,079-3,108/t) ex works, which they thought a bit low at the moment.

The source mainly exports to Europe but they receive few inquiries from the European buyers. "There are still large inventories in Rotterdam warehouse while many buyers are absent from the market due to the vacation," said the source. However, the source claimed that some foreign buyers are about to replenish some stocks before the price goes higher in late August when demand would recover.

The source claimed that some participants are wondering whether the manganese export duty would be raised to 25%, which is surely to result in higher prices. Some of their Asian customers are inquiring them of the material for fear of the tax adjustment, but they failed to make an offer as they have no stocks. The source claimed that some suppliers are hesitant to sell for the moment, waiting for higher prices in the coming weeks.

Another Hunan-based briquette supplier who just delivered some cargos of the materials reported that they are lack of manganese flakes for their production. "Many suppliers are engaged in signed contracts or are holding stocks for higher prices," said the source who claimed that some suppliers raised their offers to above RMB21,500/t (USD3,152/t) ex works, which the source has no intention to accept at the moment.

The source claimed that the stronger demand of manganese briquette is mainly due to the supposition that the government would abandon the tax rebate and place an export duty to the material which would push briqutte price higher after that. "Many foreign buyers are replenishing some stocks before the tax adjustment, which is rumored to come into effect since August 15th but is still a surmise.

The source has no stocks of manganese briquette at hand while there are still inquiries of the material from the foreign buyers. The source revealed that briquette price rises to USD3,400-3,500/t FOB from USD3,300/t late last week. "And the market is still short of supply."