Chinese manganese prices have stabilised following consecutive gains in the past few weeks, with producers expecting prices to resume their uptrend in November because of output cuts triggered by the government's targets to control energy consumption and cut emissions.
Prices for 99.7pc grade flake have held stable at 44,000-45,000 yuan/t ($6,878-7,035/t) since 27 October, up by 34.85pc from Yn32,500-33,500/t ex-works on 30 September driven by tighter spot availability. Some trading firms began to sell material for profit taking late this week, which has prevented prices from rising further from the higher levels in the past two weeks.
Export prices have been stable at $7,200-7,500/t fob China since 27 October, up by 41.35pc from $5,150-5,250/t fob at the end of September. European manganese flake prices surged past $8,000/t this week to a fresh high as cancelled Chinese shipments further squeezed supplies.
Spot availability has remained tight as most producers are operating at low capacity rates because of electricity supply restrictions. Main producer Wuling Manganese on 25 October suspended its 200 t/d production and is unlikely to restart output until the end of November. Songtao Sanhe halted its 160 t/d output last week, although it may resume output more swiftly.
Supplies are expected to tighten further as all producers in Xiushan county in southwest China's Chongqing city will be permanently shut by the end of November. Producers with capacity below 30,000 t/yr in...
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