Manganese market in low demand

20 Jun 08 - Manganese market is stagnant with most major buyers out of the market. Sources reported to Asian Metal that demand has been weak in both domestic and export markets. The manganese price falls to around RMB21,200/t (USD3,081/t) ex works and some suppliers are even underselling their stocks at lower prices.
A Hunan-based smelter who has already cut down one of the two production lines told Asian Metal that they received no inquiry from the downstream consumers. "Actually, manganese smelters have cut down their production due to the weak demand and the tight supply of raw materials, but manganese price keeps falling as few buyers are purchasing now." The source stopped quotation early this week but he claimed some suppliers are eager to empty their stocks and thus might lead to much lower prices than the current RMB21,200-21,400/t (USD3,081-3,110/t) ex works.
The source claimed the huge rainfall in large areas of south China has already resulted in roads blocked and the transportation of manganese ores is influenced. "Some smelters may be lack of raw materials and would cut down production further."
Another Hunan-based smelter who has kept huge stocks at hand halted production for maintenance. "The market is too low for us to continue normal prodution unless there are signed contracts to be fulfilled," said the source who puts current manganese price at RMB21,100-21,300/t (USD3,067-3,096/t) ex works. "We are not surprised if some suppliers lowered their price to below RMB21,000/t (USD3,052/t) ex works," said the source, claiming no buyer is in the market now.
Sources reported to Asian Metal that manganese demand would be lower in the summer days and more smelters would have to cut down production. However, some large players are still expanding their capacities to strengthen their competitive power.