BEIJING (Asian Metal) 20 Nov 09 – Participants reported to Asian Metal that manganese offers go up slightly while the electricity price rises in winter and the ore resources will be tight in the near future. Inquiries from downstream market increase these two days, and most smelters feel a bit reluctant to sell.
A Guangxi-based manganese flake smelter, with an output of 1,000tpm, disclosed to Asian Metal that manganese flake price goes up to RMB13,400/t (USD1,962/t) ex works but no deals are concluded these two days at this price level. With the production cost rising, the electricity price has risen during the forth quarter in Guangxi province. The source believes the price will go up continuously in the end of year.
According to the source, the manganese flake production is reducing and about 60% of smelters are in operation. Meanwhile, inquiries increase slightly these two days. "I finalized three deals of 100t with Japan customers this month at USD2,500-2,550/t FOB," shared the source, forecasting the demand will increase in the future.
A Xiangxi-based manganese flake smelter, who has an output of 1,500tpm, revealed to Asian Metal that he made a deal of 60t at RMB13,300/t (USD1,947/t) ex works yesterday and the price goes up by RMB100-200/t (USD15-29/t) compared with that a few days ago. "The demand for manganese has not increase yet but more inquiries are received," said the source, holding an optimistic attitude towards the price to go up in the coming days.
According to the source, the production is reducing due to the high cost while the ore materials will be tight in winter. Some who depend on buying ore maintain the production with thin profit. The source claimed that most smelters have little stock and feel a bit reluctant to sell, with the production cost rising.
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