[+/-] : Manganese flakes export market sees lower prices

Manganese export market sees lower prices at around USD3,900-3,950/t CIF Rotterdam this week with some Chinese suppliers offering much lower prices of around USD3,850-3,900/t FOB. And many of them are facing difficulties in getting through the Customs.
AA Hunan-based suppliers claimed that they just concluded some small deals at prices of USD3,850-3,900/t FOB with buyers from European countries. "Manganese demand is very weak this month with few inquiries from the foreign buyers," said the source. "Though many suppliers insist on offers of USD3,900-3,950/t FOB or even higher prices of USD4,000-4,050/t FOB, some exporters still with some stocks at hand are selling at much lower prices of USD3,850-3,900/t FOB." The source claimed that they have to release some materials for cash turnover and could not await for higher prices which is expected in late September.
AThe source reported that the current price level in Shenzhen Customs is much higher than their concluded price and they have to pay extra money to get through the Customs. "This adds to the export cost and makes our business less profitable."
Another Hunan-based trader who offers USD4,000/t FOB failed to attract any foreign buyers. "Many buyers are hesitant to purchse, claiming the price too high," said the source who complained that some suppliers are selling at much lower prices of USD3,850-3,900/t FOB. "That can be profitable for the smelters but we traders could not accept such a price due to few profits." The source has no strong intention of exporting for the moment and most of their deals are signed with domestic buyers at the moment.
The source also claimed that some foreign buyers are getting the material through Hai Phoon port in Vietnam. "I don't know how could domestic suppliers deliver their material through Vitenam but I believe the price can be much lower there, so they can avoid the high price floor at the moment."

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[+/-] : Antimony ingot price stable in Russia

Some antimony consumers in Russia return to the spot market in succession to purchase for the production next quarter. However, most buyers are holding watching attitudes due to the high price. Few deals are concluded this week. The price of antimony ingot 99.65%min remains stable in the range of RUB200-205/kg (USD8,123-8,326/t), unchanged compared with that one week ago.
A Russian antimony ingot producer, with the production capacity of 120tpm, attributes the high price in Russia to the climbing price in the international market. The source said that price increase of antimony ingot in China contributes to that in European. In turn, the price increase in Europe leads to the rise in export and domestic price in Russia.
The source offers RUB205/kg (USD8,326/t) d.d.p. for antimony 99.65%min, the same as that one week ago. However, no deal has been concluded this week. "Though we received more inquiries this week, most buyers are just testing the market without real intention of buying," he said. Most buyers cannot accept the current high price and purchase inactively, so he plans to lower the price. He thinks that the price will go down in a short term.
AA trader in Russia reported as for the market trend, most traders are confused, so they hold the watching attitudes at present due to the price hike in the local antimony market. Thus, the market supply reduces relatively and the price runs in a high level. The source purchases around 60tpm of antimony 99.65%min.
The source currently quotes RUB208/kg (USD8,448/t) d.d.p for antimony 99.65%min this week. However, some traders have reduced the price in order to reach a deal. The market keeps dim, for consumers cannot accept the high price. Therefore, the source believes that price of antimony will go down in a short term.

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[+/-] : European antimony market quiet this week

As European buyers are scared of the high price of antimony, European market had been quiet this week.
AA European trader told Asian Metal that he received offers from China earlier this week at USD6,580/t CIF Rotterdam for 99.65%min standard grade two antimony ingot and USD6,700/t CIF for low bismuth material. Both offers are for end of September shipment.
He opines that there is little stock in Europe at the moment, and no shipment from China before end of September. According to him, there were some activities in the last two weeks but market calm down again this week. "People are reluctant to the high prices."
The trader holds that the high price would be temporary for the next two to three months, so the consumers would not change to substitute. "USD7,000/t is still acceptable for the current antimony market, but if it continues going up to USD8,000-10,000/t, then we will see people leave antimony for other products," the source remarked.
Another trader confirmed the price of 99.65%min low bismuth grade two antimony ingot in offered to him at USD6,700/t CIF Rotterdam, and about USD6,800/t in warehouse Rotterdam. "But consumers are not willing to buy at the current prices," said the source who also had not concluded any deal this week.
He believes antimony price will continue increasing in the next one month due to the tight supply from China and increasing demand in Europe after more consumers come back to offices. "Price may reach USD7,000/t very soon."
The source learned that Chinese government increased export duty for some material from middle of the week, and he told Asian Metal that there maybe less smuggled material in market now, which is another reason for the tight supply. "I heard people talking about higher profit to smuggle ferroalloys and coke because the export duties are as high as 20% and 40%, and antimony is only 5%."
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[+/-] : Re: European manganese price slips

Due to the continuous weak demand from consumers, market participants reported a slight fall of manganese flake prices to the range of USD4,050-4,150/t in warehouse Rotterdam, and Chinese offers are also lowered to the range of USD4,000-4,100/t CIF Rotterdam.
A European trader holds manganese flake prices to be in the range of USD4,050-4,100/t in warehouse Rotterdam. He is also receiving Chinese offers in the range of USD4,000-4,100/t CIF Rotterdam.
AThe source claimed that the manganese market is very quiet. "There is absolutely no inquiry from consumers in the past 3-4 weeks!"
He opined that the weakness in the market is due to the slowdown in the world economy, "The recession in Europe and the US is causing great effect on the steel industry as well. Nearly zero growth rate is forecasted for Europe in the next quarter."
The dealer believes buying activities would continue to keep weak in the next few weeks.
Another trader holds manganese flake prices to be in the range of USD4,050-4,150/t in warehouse Rotterdam. He is also receiving Chinese offers in the range of USD4,000-4,100/t CIF Rotterdam.
He agreed that the demand is very weak in Europe now, "We are receiving few inquiries from our customers, as most consumers are holding back from purchase when they are unsure of demand for their end-products in the weak economy."
The source claimed that the manganese market is very quiet now and would need to wait and see how it would become in the next few weeks, "By right, consumers are to return from the summer holidays to purchase material. But if we don't see them, then demand is expected to keep slow in the next quarter too."

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[+/-] : European manganese price slips

Due to the continuous weak demand from consumers, market participants reported a slight fall of manganese flake prices to the range of USD4,050-4,150/t in warehouse Rotterdam, and Chinese offers are also lowered to the range of USD4,000-4,100/t CIF Rotterdam.
A European trader holds manganese flake prices to be in the range of USD4,050-4,100/t in warehouse Rotterdam. He is also receiving Chinese offers in the range of USD4,000-4,100/t CIF Rotterdam.
AThe source claimed that the manganese market is very quiet. "There is absolutely no inquiry from consumers in the past 3-4 weeks!"
He opined that the weakness in the market is due to the slowdown in the world economy, "The recession in Europe and the US is causing great effect on the steel industry as well. Nearly zero growth rate is forecasted for Europe in the next quarter."
The dealer believes buying activities would continue to keep weak in the next few weeks.
Another trader holds manganese flake prices to be in the range of USD4,050-4,150/t in warehouse Rotterdam. He is also receiving Chinese offers in the range of USD4,000-4,100/t CIF Rotterdam.
He agreed that the demand is very weak in Europe now, "We are receiving few inquiries from our customers, as most consumers are holding back from purchase when they are unsure of demand for their end-products in the weak economy."
The source claimed that the manganese market is very quiet now and would need to wait and see how it would become in the next few weeks, "By right, consumers are to return from the summer holidays to purchase material. But if we don't see them, then demand is expected to keep slow in the next quarter too."

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[+/-] : Manganese export faces high price floor

22 Aug 08 - Manganese export market is dull at the moment and the export price remains low at around USD3,900-3,950/t FOB. However, sources reported to Asian Metal that the export price floor in some Customs is quite high and they find it difficult to deliver the maerial out of the Customs.
A Guangxi-based smelter who is about to deliver some material out of Huangpu Customs told Asian Metal that the price floor in Shenzhen is almost USD4,000/t FOB which they could hardly get at the moment. "Actually, the price is around USD4,000/t CIF Rotterdam for the moment," said the source who complained that current price floor is too high for the them.
"We are ready to turn in some money to the Customs as deposit but we may have to make up the gap between the price floor and our export price by ourselves. Then we can hardly have any profits at the moment," the source said.
Another Hunan-based smelter also confirms that the export price floor is hampering their export now. "The price floor could ensure that the domestic suppliers would not lower their price too much at the cost of the whole suppliers' interest, but when the market remains stagnant, we can hardly conclude a deal at workable price," said the source who claimed that the price floor in Huangpu is in the range of USD3,800-3,900/t FOB. The source claimed that once manganese price floor is over USD4,500/t FOB early this month. "Some deals were signed at higher prices months ago for long-term contracts but now the export market is weak and the price could not be so high."
AThe source also added that the price floor for manganese ingot is around USD4,050/t FOB and that of LC FeMn around USD4,050/t FOB, MC FeMn around USD3,900/t FOB for the moment.

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[+/-] : Magnesium ingot export market sluggish with policy unclear

The export market for magnesium ingot remains quiet with few inquiries showing up. Additionally, some exporters are unclear about the price floor policy which becomes a hot topic presently, so they dare not clear customs in a hurry, market sources reported to Asian Metal. A Shanxi-based trader who exports 200-400tpm of magnesium ingot reported that the export market has been dull for over two months while they only concluded three or four small deals with foreign customers.
The source revealed that they concluded a deal of 120t at USD4,300/t FOB Tianjin with a consumer from East Europe a week ago for with shipment no later than August. "We're satisfied with the concluded price, as many others said that they could seal a deal at prices above USD4,200/t FOB," said the source.
However, the source dares not arrange shipment for the contracted material after learning that Tianjin Customs adopted price floor policy on magnesium export and exporters should have to pay more export tax according to a limit price which is much higher than the current market price.
An official from a Shanxi-based smelter also expressed the concern about the export policy, believing that the limit price may make the market situation worse. "The export market has been sluggish. Furthermore, if more suppliers suspended exporting, the domestic price is bound to decrease due to increasing supply," said the source.
The source revealed that the policy is still unclear now, as only one or two exporters reported that their materials were trapped by the customs. Therefore, participants have to keep a close eye on the market.
According to the source, the smelter is running with a small output of 300-400tpm, and most of the materials are sold in the domestic market. "We exported some materials via trading companies, but few traders ordered materials from us as they had not received any inquiries from foreign buyers," said the source. The source thinks that the price of USD4,050-4,150/t FOB should be workable for the time being.

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[+/-] : Magnesium ingot producers refuse to lower offers

18 Aug 08 – Many producers claimed that the current price of magnesium ingot is below their production cost, so they refuse to decrease the price further despite the still weak demand. Moreover, some producers even raise offers slightly, market sources reported to Asian Metal.
A Shanxi-based producer reduced output to less than 200tpm based on its capacity of 500tpm because of the sluggish market and also short supply of coal. The source acknowledged that the current price has dropped to around RMB25,000/t (USD3,639/t) ex works and some deals were concluded at RMB24,500/t-24,800/t (USD3,566-3,610/t) ex works in Taiyuan and Fugu. "However, we won't sell any below RMB25,000/t (USD3,639/t) ex works despite that we have around 300t of magnesium ingot in stock, as such a price is around RMB1,000/t (USD146/t) lower than their production cost," said the source.
AsThe source does not think the price will go lower as many smelters are suffering losses; otherwise, more smelters will be forced to halt production. Meanwhile, the source disclosed that they can not get sufficient coal supply from Shenmu, Shaanxi where they usually purchase coal, as many mines there were asked to shut down for safety concern.
Another Shanxi-based producer also claimed that they would not sell magnesium ingot at prices below RMB25,000/t (USD3,639/t) ex works. "Demand is indeed weak. However, if the price continues to go down, more smelters would rather choose to halt production than keep producing with great losses," said the source.
The source confirmed that a few deals in Taiyuan were closed at a relatively low price of RMB24,500/t (USD3,566/t) ex works recently, but added that those deals were with large quantities and the buyers and sellers have long-term relationships.
The source thinks that with more smelters reducing or suspending production, the stocks in the spot market will gradually decrease, and the market will be under less pressure of the high stocks.
The smelter is running at less than half of its production capacity of 600tpm with 100-200t of the material on hand.

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[+/-] : European antimony market raging higher

20 Aug 08 – In the last two weeks, antimony prices continue rising fast in Chinese export market. Many European market participants hold that price will increase further in the coming days.
A European trader told Asian Metal that price of antimony are offered in wide range of USD6,600-6,800/t CIF Rotterdam for 99.65%min standard grade two antimony ingot, and material with higher purities are offered at close to USD7,000/t CIF Rotterdam. "This is a clear trend that price will break USD7,000/t for all grades antimony ingot very soon."
He takes that price of antimony metal will increase further if the Chinese suppliers want to do so. "The world antimony market is controlled by Chinese supply in the last two years. Price will go up if they really want to," the trader said and thinks it is difficult for the consumers switch to substitute. "Price had been going up since the beginning of 2005; consumers would be already switched to alternatives."
Another trader disclosed that the current offer for 99.65%min standard grade two antimony ingot is in the range of USD6,750-6.800/t in warehouse Rotterdam. "I was on holiday last week, and price increased by almost USD200/t," the source remarked, and regretted that he had not the offers at USD6,600/t in warehouse Rotterdam before he went on holiday.
He supplies material to antimony-lead battery producer in Europe. "Most of them are still in holiday, such as people in Spain, Italy and France, but I am sure that they would be surprised at the high prices when they come back to office." The source holds that there is no effective alternative for the consumers, so they have no choices but have to accept high offers. "Moreover, most of them do not have stocks now," the trader added.

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[+/-] : Pressure mounts on magnesium ingots price in Europe

With magnesium price sliding in Chinese market, pressure mounts on price in Rotterdam warehouse though it still ticks at around USD4,400-4,500/t. Participant believe it may slip very soon as most people are getting firm offers from Chinese buyers at around USD4,200-4,250/t CIF Rotterdam.
Today a container was reportedly concluded at USD4,400/t in warehouse Rotterdam and the seller believes we might see price sliding before end of the week or by next week if price in Chinese market continues to sink.
A European trader who sold a container for USD4,450/t in warehouse Rotterdam for prompt delivery and bought two containers for USD4,260/t CIF Rotterdam for early September shipment thinks the price is still high but may slide soon looking at the situation in Chinese market.
"We might see prices going down to around USD4,200/t in warehouse Rotterdam soon," predicted that source. "I think market will become quieter than it was before because consumers will totally relax to see the price sink to the bottom."
AsiaHowever, some consumers who really need material are looking into the market. A European consumers reported firm offer today at USD4,500/t d.d.p, but considering the possibility of buying at this price or something lower because the market seems to be giving them chance for bargain.
All eyes are on magnesium market now waiting to see where the price will settle with many players, predicting it might go down to around USD4,200/t in warehouse Rotterdam soon.

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[+/-] : Antimony ingot price keeps rising in Russia

According to the participants, although there were fewer deals in antimony market of Russia during summer holidays, the price increased in Russian market as at the same time, the antimony ingot prices rose in China and Europe due to the tense supply in China and the local suppliers in Russia received more inquiries. This week the price of antimony ingot 99.65%min increased to RUB195-200/kg (USD 7,985-8,190/t) d.d.p., by RUB10/kg (USD410/t)'s from RUB185-190/kg (USD7,575-7,780/t) last week.
AsA supplier in Russia said, the local spot market was active this week, with more inquiries from the purchasers due to the price rising of antimony ingot in the world market. The source produces 150-200 tons per month, among which, about 80 tons are exported to other European countries, and the rest are sold to the local spot markets. The source also revealed, currently, their offer for antimony ingot 99.65%min for exports is USD6,800/t CIF Rotterdam, unchanged from last week; however, offers for the domestic market has risen from RUB195/kg (USD 7,985/t) last week to RUB205/kg (USD 8,395/t) this week. The source also disclosed that, as participants should pay for18% of value added tax in local market, the price in domestic market is much higher than the export price.
The source sold 10 tons of antimony ingot 99.65%min at USB198/kg (USD8,108/t) d.d.p. "The antimony price increased in China due to the tight supply of antimony concentrate and antimony ingot, and as most antimony ingots in Russia are imported from China, the local antimony ingot price increases accordingly." he said.
The source believes, the antimony ingot price in Russia is likely to increase up to RUB220/kg (USD9010/t) before the summer holidays ends at the end of August, and is probably to rise up to USD7,000/t in Europe.
A trader in Russia received an offer for antimony ingot 99.65%min of USD6,800/t CIF New Siberia from Chinese suppliers, USD100/t's higher than USD6,700/t of last week. The source said, at the moment, the price for antimony ingot 99.65%min is at around RUB200/kg (USD8,190/t) in the local spot market, up by RUB10/kg from RUB190/kg last week.
The source holds, the main reason for the price increasing of antimony ingot is the export price increasing in China due to the tight supply of antimony concentrate; and as most traders in Russia purchase antimony metal from China, the import price for the materials increased and thus the local price went up accordingly.

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[+/-] : Manganese flakes market still stagnant

Manganese market is quiet with few buyers purchasing at the moment. Sources claimed that there are still many inquiries but the buyers are reluctant to purchase at current prices.
AsA Hunan-based trader told Asian Metal that the market has been quiet though they can still receive some inquiries. "Currently, most Chienese suppliers have already lowered their offers to RMB20,500/t (USD2,988/t) ex works," said the source who claimed that due to the tightening supply of raw materials, more suppliers are reluctant to sell at lower prices.
The source expects manganese market to rebound late this month or early next month when he belives more buyers would return form vacation. However, the source is not quite optimistic as the overall market is on the downward trend. "The market is more stagnant compared with that last year," said the source who revealed that the export price is around USD3,900-3,950/t FOB but the foreign buyers are still pressing the price down.
Another Hunan-based supplier just received an inquiry of about USD3,850/t CFR Buenos Ares. "The price is too low for us to accept," said the source who still offers USD4,000/t FOB. The source claimed that many exporters have lowered their offers to USD3,900/t FOB to attract deals. "Demand at the moment is so weak that many of them are losing confidence." The source expects more buyers back to purchase early next month and they want to watch for some while.
The source also claimed that manganese production at the moment is influenced by the tight supply of power and raw materials. "The production is abnormal. Thus manganese supply is not quite sufficient in some areas."

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[+/-] : European antimony prices skyrocketing

As supply continues to be tight in China, European antimony market prices rise fast.
A European trader told Asian Metal that antimony price continues to increase in European market that the new offers of 99.65%min low bismuth grade two antimony ingot is in the range of USD6,550-6,600/t CIF Rotterdam, and he booked some material in the lower end of the range.
AAccording to him, there is one peculiar phenomenon that some Chinese traders look for material from European market, which he believes the material in China is almost exhausted. Moreover, high grade material is extremely difficult to find as people do not have stock or are not willing to make offers. He helped a Chinese trader booked a parcel of 99.8%min grade one antimony ingot at USD6,950/t in warehouse Rotterdam for delivery in beginning September.
He takes that the price will continue to increase because the shortage of material, and price may break USD7,000/t when demand increase in end of August or beginning of September.
A European consumer received offers in the range of USD6,500-6,600/t CIF Rotterdam for 99.65%min low bismuth grade two antimony ingot. He disclosed to Asian Metal that he bought material in advance because he thought price would go up higher during the Olympic Games.
AThe source holds that there are few activities in the market, which were initiated by traders so the price could keep at the high level. According to him, many people are still in summer holiday, and it is unlikely to have real demand in Europe. "Price may keep at the currently level during Olympic games."

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[+/-] : Manganese flakes market stagnant

Manganese market is quiet with few buyers purchasing at the moment. Sources claimed that there are still many inquiries but the buyers are reluctant to purchase at current prices.
A Hunan-based trader told Asian Metal that the market has been quiet though they can still receive some inquiries. "Currently, most Chienese suppliers have already lowered their offers to RMB20,500/t (USD2,988/t) ex works," said the source who claimed that due to the tightening supply of raw materials, more suppliers are reluctant to sell at lower prices.
The source expects manganese market to rebound late this month or early next month when he belives more buyers would return form vacation. However, the source is not quite optimistic as the overall market is on the downward trend. "The market is more stagnant compared with that last year," said the source who revealed that the export price is around USD3,900-3,950/t FOB but the foreign buyers are still pressing the price down.
Another Hunan-based supplier just received an inquiry of about USD3,850/t CFR Buenos Ares. "The price is too low for us to accept," said the source who still offers USD4,000/t FOB. The source claimed that many exporters have lowered their offers to USD3,900/t FOB to attract deals. "Demand at the moment is so weak that many of them are losing confidence." The source expects more buyers back to purchase early next month and they want to watch for some while.
The source also claimed that manganese production at the moment is influenced by the tight supply of power and raw materials. "The production is abnormal. Thus manganese supply is not quite sufficient in some areas."

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[+/-] : Large antimony suppliers held a meeting in Kunming

15 Aug 08 – A meeting of antimony industry was held yesterday on 14 Aug. 2008, in Kunming, the capital of Yunnan province in China. It was organized by Yunnan Muli Antimony Industry Co., Ltd. as it is the 50th anniversary of the foundation of the company and as the current antimony industry is going through a crucial period that the supply of antimony ingot becomes very tight due to the shortage of antimony concentrate during the Olympic Games. There are altogether 18 state-owned companies that are licensed antimony exporters and antimony export suppliers being invited with more than 20 participants attending the meeting. The meeting encircled a joyful and relaxed atmosphere and participants have held a warm discussion over the antimony industry and market. They have also exchanged ideas and reached consensuses.
The 18 companies includes China Minmetals Non-ferrous Metals Co., Ltd, Hunan ZhongNan Antimony & Tungsten Trading Co., Ltd, Guangdong Metals and Minerals Import & Export Group Corporation, Liuzhou China Tin Group Co., Ltd, Guizhou Provincial Metals and Minmetals I/E Corporation, Yunan United Antimony Co., Ltd，Hsikwangshan Twingkling Star Co., Ltd, Zhazixi Antimony Mine Of Anhua Hunan China, Hunan Taojiang Banxi Stibium Mine, Hunan Chenzhou Mining Group, Yiyang Huachang Antimony Industry Co.,Ltd, Shenzhen Jiefu Group Co., Ltd, etc. There is one thing which should be clarified that there is not even one company from Lengshuijiang region except Hsikwangshan Twingkling Star Co., Ltd being invited to attend the meeting.
The meeting was finished within one day and participants held a warm discussion yesterday. They exchanged ideas and reached consensuses on how to face with the current situation in the latter half of year. There are three major parts of the meeting, which are the market review, future market analysis and countermeasures participants should carry out in the future.
AIn the first part, participants review the price trend in the first half of year and the reasons for the antimony ingot to become tight. They concluded four reasons: firstly, the Chinese government has been carried out a strict control on the explosives in view of the security reasons during the Olympic Games; secondly, the government put great emphasis on the supervision on safety production and environment pollution control. Many private-owned and small-sized antimony plants which do not conform to the safety production and environmental protection standards have been shut down; thirdly, many smelters have suspended production due to the hot summer season in view of the safety production policies; fourthly, the antimony concentrate becomes tight due to the above three reasons. Therefore, the output of antimony ingot drop sharply which finally led to the price skyrocketing these days in August.
As for the analysis for the future market, many participants believe the price may hang around at high levels in the latter half of year. There are totally three reasons to support this point of view. Firstly, as the political situation is very complicated this year because many terrorists constantly carried out terrorist events in China, the government will probably not release the control on the explosives, even after the Olympic and Para-Olympic Games; secondly, it is a long-term supervision for the government on the safety production and environmental protection and it may only become stricter in the future; thirdly, as the supply of antimony ingot is short, smugglers could not even get the metal to ship outside China. According to conservative statistics, there are around 60% of Lengshuijiang-based smelters have suspended production so far, but no ones know the exact figure of the output being reduced, as there are so many small smelters in this region and it is difficult for people to do the research and collect the figures. Therefore, the antimony price is likely to stay at a high level in the latter half of year.
Many participants have also reached consensus on the counter measures that how to keep the market running at a high level. On the one hand, many participants believe that the Lengshuijiang region controls the whole China and the world market as most of the metal comes from this region after the mines closed by the government in Nandan Guangxi. However, almost all smelters in Lengshuijiang region quote excluding value added tax, which means the price is lower and more competitive than those quotations from state-owned or large and formal companies. It is a great impact on the export supplying companies, and also it incites the smugglers to do the smuggling business. Participants finally decided to write a report to the Ministry of Commerce and other departments concerned for the unreasonable phenomenon in Lengshuijiang region with the hope of the government to shut down these plants or force them to carry out business in accordance with the formal regulations; on the other hand, participants suggested to "reduce the output" and try all means to avoid the excessive supply in the market. All participants should be united as one in order to make the market stable at a high level. Some participants stated that as the supply of antimony concentrate of the state-owned mines is short, they have to import the materials from Myanmar and Russia, but the prices of the imported materials are high which led them to make little or no profits. They plan to reduce the output of antimony ingot by not importing the material from these countries in the latter half of year and only consuming the antimony concentrate from their own mines, so that they could help the market to keep at a high level.
AsBesides, some antimony trioxide smelters have also posed some questions. The convention in the antimony trioxide market is that suppliers should deliver the goods at first and get the money back in three months or some times even in six months. This has brought to the antimony trioxide smelters with great inconvenience and looses and also affected a good capital circulation of these companies. Therefore, antimony trioxide smelters have reached a consensus that trioxide buyers should "pay instantly" or make the payment within one or two months at the latest, or else buyers will be refused by any orders or inquires they sent.
AsParticipants stated that these state-owned smelters will resume production by the end of August when major consumers from Europe come back to the market. There will be antimony ingot to supply by mid-September. However, smelters are not going to release the material by then, because they want to keep the antimony market high. According to participants, the inventories holding on hand are indeed very little with some holding around 100 tons and the supply of antimony ingot is very tight.

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[+/-] : European antimony prices skyrocketing

13 Aug 08 – As supply continues to be tight in China, European antimony market prices rise fast.
A European trader told Asian Metal that antimony price continues to increase in European market that the new offers of 99.65%min low bismuth grade two antimony ingot is in the range of USD6,550-6,600/t CIF Rotterdam, and he booked some material in the lower end of the range.
According to him, there is one peculiar phenomenon that some Chinese traders look for material from European market, which he believes the material in China is almost exhausted. Moreover, high grade material is extremely difficult to find as people do not have stock or are not willing to make offers. He helped a Chinese trader booked a parcel of 99.8%min grade one antimony ingot at USD6,950/t in warehouse Rotterdam for delivery in beginning September.
He takes that the price will continue to increase because the shortage of material, and price may break USD7,000/t when demand increase in end of August or beginning of September.
A European consumer received offers in the range of USD6,500-6,600/t CIF Rotterdam for 99.65%min low bismuth grade two antimony ingot. He disclosed to Asian Metal that he bought material in advance because he thought price would go up higher during the Olympic Games.
The source holds that there are few activities in the market, which were initiated by traders so the price could keep at the high level. According to him, many people are still in summer holiday, and it is unlikely to have real demand in Europe. "Price may keep at the currently level during Olympic games."

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[+/-] : Manganese export market sees higher prices

Manganese market is around RMB20,200-20,400/t (USD2,945-2,974/t) ex works in domestic market with few consumers in the market to purchase. Sources reported to Asian Metal that the market has been extremely quiet at the moment while most participants are watching. However, some deals were concluded at relatively higher prices though the quantities were small.
AsA Hunan-based smelter just concluded a deal of only one cargo at USD4,200/t CIF Pusan for prompt delivery. "The South Korean consumer failed to find any material from the major suppliers in the area and they are eager to purchase some at the moment for fear that the price might go up late this month," said the source who cliamed that many smelters have already booked out the output in August while some others are still out of production.
The power supply in Jishou, Hunan is relatively stable but the supply of raw materials is tightening. The source claimed that due to the environmental and safety consideration, many manganese mines closed recently, which will finally result in more manganese smelters cutting down their production.
The smelter is not running at two lines with an output of around 1,000tpm. The source still keeps about two cargos of materials at hand and some deals are under negotiation. "We offer USD4,000/t FOB fro prompt delivery," said the source.
Another Hunan-based trader claimed that they received no inquiry from the foreign buyers. "We lowered our offers to USD3,950/t FOB but still the export market is quiet," said the source who expected more consumers to return to the market late this month. "Some buyers are asking for materials with prompt delivery and may accept relatively higher prices but we have no stocks now."
However, the source is not quite confident whether demand would go stronger in time when the domestic production increases late August. "Maybe we need to wait till early September," said the source. The source still has some deals signed at USD4,500/t FOB in May to fulfill.
In the meanwhile, the source hopes the high price of FeMn could support manganese price at around USD4,000/t FOB if not to push it higher. The source claimed that the price at USD4,000/t FOB is workable for them but USD3,900/t FOB a bit low and many suppliers may be reluctant to sell at the latter price.
Asianmetal(English) http://www.asianmetal.com 8FPC

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[+/-] : Antimony market jumps in China

Influenced by tight supply of raw materials, the antimony market firms and jumps early this week.

A Guangxi-based antimony smelter increased their offers for grade two antimony ingot from RMB39,500/t (USD5,758/t) ex works early last week to RMB41,000/t (USD5,977/t) ex works early this week, up by RMB1,500/t (USD219/t). The source revealed that the concluded price for low bismuth grade two antimony ingot is at RMB39,000/t (USD5,685/t) VAT excluded ex works up from RMB38,000-38,200/t (USD5,539-5,577/t) VAT excluded ex works early last week. The concluded price for high bismuth materials is at RMB38,000/t (USD5,539/t) VAT excluded ex works.

The smelter has concluded around 100 tons of antimony ingot at RMB40,000-41,000/t (USD5,830-5,977/t) in the first ten days of August. "Buyers only purchased 50-60 tons each time as they must be cautious when price is increasing."

They also increased quotations for antimony trioxide 99.5%min to RMB38,000/t (USD5,539/t) ex works early this week up from RMB36,500/t (USD5,320/t) ex works two weeks ago. The smelter would not increase their offers this week as they believe the price is relatively high and it will take some time for consumers to accept it. They believe that the market may continue to go up after the summer holiday when buyers come back to make purchases.

A Hunan-based smelter quoted RMB43,000/t (USD6,268/t) ex works early this week, up from RMB42,500/t (USD6,195/t) ex works last week, by RMB500/t. They have concluded deals at around RMB41,500/t (USD6,050/t) ex works in the beginning of August when prices have not reached to the current level.

The source also quoted USD6,500-6,600/t CIF Rotterdam early this week, up by USD100/t from USD6,400-6,500/t in the beginning of August. The source stated that they may not quote this week as they do not have enough materials to provide to the buyers.

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[+/-] : Antimony consumers buying at high prices

As most consumers have failed to get enough antimony ingots in the recent two weeks, the price of antimony ingot and antimony trioxide increases continuously.
AA Hunan-based smelter with a monthly production capacity of around 400 tons concluded a deal of around 20 tons of antimony trioxide 99.5%min at RMB37,500/t (USD5,466/t) (freight included) early last week and they increased offers to RMB38,000/t (USD5,539/t) (freight included) late last week.
The source stated that many buyers send inquires for relatively large quantities of around 100-200 tons to them and they dare not sign the contract with buyers because they could not get enough materials to produce antimony trioxide.
The smelter quoted RMB42,000/t (USD6,122/t) (freight included) for antimony ingot 99.65%min early last week and they increased offers to RMB43,000/t (USD6,268/t) (freight included) late last week. One of their clients found the price high and did not accept it. "As the antimony ingot supply is very tight, we are going to increase offers for the metal further."
AThe source revealed that there are few of antimony concentrate in the market; however, demand is weak as most plants have been shut down. The source believes that the market may go up further in the near term by the end of August and after the summer holiday finishes, when buyers comes back, how the market go depends on how much price the buyers could accept as the tight supply may not ease within one month.
A Shanghai-based trader confirmed that their supplier quoted RMB42,000/t (USD6,122/t) (freight included) for antimony ingot 99.65%min and RMB38,500/t (USD5,612/t) (freight included) for antimony trioxide 99.5%min, but they could not accept it.
AsThey heard that some exporter concluded 20 tons of antimony trioxide 99.5%min at USD5,500/t FOB China and buyers only sent small-volume inquiries of 10-20 tons each time.

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[+/-] : Imported manganese ore price stable in China

The price of imported manganese ore, especially for high grade materials from Australia and Africa, remains high and stable. Market participants believe the situation will last for the whole quarter.
AWith a consumption of 2,000tpm of imported manganese ore, a Liaoning-based smelter informed the price of Australian lumpy manganese ore 45% stays stable at RMB138/dmtu (USD17.85/dmtu) ex ports for the past month.
"There is little possibility for the price of imported high grade materials to continue to move up even in the fourth quarter, as few smelters will accept higher offers," said the source. "However, it will not drop greatly either, and the price is likely to keep stable till the end of this year."
A trader in Guangdong, offers RMB110/dmtu (USD14.23/dmtu) for Turkish manganese ore 35.6-38%, Fe 1.5%max and P 0.1%max, and he has sold about 2,500t of the material at this price in the past month.
The source reported the market generally keeps stable for high grade materials, while the price of imported manganese ore from Southeast Asia keeps climbing slightly now.
"Our purchase price stays stable at above USD11/dmtu CIF CMP, but I learnt that the price of imported Southeast Asian manganese ore 40% has increased to above USD9/dmtu CIF CMP from USD5-6/dmtu two month ago," said the source." Therefore if the market slows down, the price of low grade materials will firstly drop, and I believe the price of other mainstream manganese ore will generally remain stable."

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[+/-] : Magnesium ingot market remains slack

Although Chinese smelters are trying their best to prevent the magnesium prices from falling further given the closures of smelters Yuncheng, Shanxi, and also the fact that some smelters are suffering loss, the domestic market still remains sluggish with concluded prices standing at a low level, market sources reported to Asian Metal today.
"We're offering at around RMB25,500/t (USD3,723/t) ex works for domestic sales, RMB500/t (USD73/t) lower than the our offer last week, but no buyer is showing up in the market," a Shanxi-based trader said, adding that little impact has been seen from the shutdown of smelters in Wenxi and other regions in South Shanxi.
The source usually sells about 300-400tpm of magnesium ingot to local consumers, but only sold 80t to a regular buyer at around RMB26,000/t (USD3,796/t) ex works late July. According to the source, it is still difficult to conduct sales domestically for the time being.
A Ningxia-based producer, running below its capacity of around 1,000tpm, also confirmed that the domestic market saw no improvement during the past week. "The export market remains dull, so does the domestic market," said the source, revealing that it is hard to stop the price from decreasing further when the market is experiencing low demand.
AThe source revealed that few inquiries and orders are seen in the market, and consumers show no interest in the price at or above RMB25,500/t (USD3,723/t) ex works.
Both sources are not optimistic about the market in August. They think that the market is still under great pressure despite that some smelters claimed that the current price is below their production cost, as the supply-demand relationship plays a dominant role in the market.

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[+/-] : Manganese market slightly rises

7 Aug 08 - Manganese price slightly rises with the supply decreasing in domestic market. And sources reported to Asian Metal that demand from downstream processing industry is strong, which pushes the suppliers to offer higher prices.
A Hunan-based smelter told Asian Metal that they are offering RMB21,000/t (USD3,066/t) ex works but deals are concluded at around RMB20,400-20,600/t (USD2,978-3,036/t) ex works. "Actually, many suppliers still keep some stocks at hand but are reluctant to sell at the moment," said the source who claimed that manganese market is at the lowest level in summer and suppliers expect the market could rebound late this month with more consumers back in both domestic and foreign markets.
However, the source is not quite optimistic about the future market as the stainless steel market is also low this year. "No one is sure whether the market would be active late this month or early next month," said the source who claimed that the manganese production in Jishou is relatively normal and the tight supply may ease with more smelters gradually resuming production. The source reported that their smelter in Guizhou just resumed the other production line and they are running at full capacity of 1,000tpm.
Another Hunan-based smelter has already booked out the output this month. "We will have to delay new deals till early September," said the source who claimed that many domestic suppliers have not much material at hand and some others with some stocks are pushing the price up from current RMB20,500/t (USD2,993/t) ex works. The source claimed that the market is relatively stable at the moment but may recover after the Olympics so the suppliers are not so eager to release their stocks.
However, the source claimed that as most foreign buyers are still absent from the market, demand remains weak. "Thus some suppliers lowered their offers to USD3,900-3,950/t FOB to attract deals," said the source who puts their offer at around USD4,000-4,050/t CIF Rotterdam.

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[+/-] : Antimony ingot suppliers refuse to sell in China

As a large proportion of antimony smelters have suspended production because of the lacking of raw materials, those who are still in production and hold a considerable amount of stocks do not want to release the metal to the market.
A South China-based smelter with a monthly production capacity of around 300 tons stated that they increased offers for antimony ingot 99.65%min from RMB39,800/t (USD5,819/t) ex works last week to RMB40,800/t (USD5,965/t) ex works early this week. The source works in a state-owned plant that will suspend the production in a few days' time for furnace maintenance.
"The supply of antimony ingot becomes tighter because of the government's stricter control on the explosives as the Olympic Games is in a week's time," said the source, continuing, "Therefore, we increase the our offers and in fact we do not want to release the metal at the current price level. If buyers could accept the increased price, we would conclude the deal."
The source believes that the market may continue to go up by the end of the Olympic Games as there are very few quantities of antimony ingot coming out of Lengshuijiang region - the major antimony production region in China. Besides, the market becomes a little active than that in the past several weeks because there are some consumers making purchases to replenish stocks at the time.
Another South China-based smelter with a monthly production of around 300 tons confirmed that they increased their offers for antimony ingot 99.65% too, from RMB37,500-37,800/t (USD5,482-5,526/t) ex works VAT excluded to RMB38,000-38,500/t (USD5,556-5,629/t) ex works VAT excluded.
The source stated that more buyers sent inquiries this week and the supply of antimony ingot becomes very tight. "We do not plan to release the metal as the market is picking up and we want to wait for higher prices."

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[+/-] : Antimony smelters increase their offers in China

Some antimony suppliers increase their offers due to the tight supply of antimony concentrate.
A Lengshuijiang-based smelter with a monthly production capacity of around 400 tons reported a deal of grade two antimony ingot of RMB39,800/t (USD5,819/t) ex works in the beginning of last week and another deal of RMB40,500/t (USD5,021/t) ex works in the end of last week. The source puts the mainstream price of grade two antimony ingot at RMB40,300-41,000/t (USD5,892-5,994/t) ex works this week.
The source that has their own mine stated, "We increased offers in the end of last week because the output of antimony ingot reduced by around two thirds caused by the output reduction of raw materials by 50%." He estimated that there are around 80 antimony ingot smelting plants in Lengshuijiang area with 50% of them suspending production and around 25% of their outputs reducing to lower than 50%. Therefore, he believes that the supply of antimony ingot may become tight in the near future and the market may pick up after the summer holiday if buyers come back to make purchases actively.
The source believes that the market may increase further in the recent two weeks. He explained that more plants may suspend the production as they are going to use up the inventories of raw materials so that the supply of both antimony concentrate and antimony ingot may become tighter. In addition, there are some buyers making some purchases to replenish stocks.
Another Lengshuijiang-based smelter with a monthly production capacity of around 300 tons confirmed that they increased their offers from RMB37,500-37,800/t (USD5,482-5,526/t) VAT excluded ex works in the beginning of last week to RMB38,000-38,500/t (USD5,556-5,629/t) VAT excluded ex works. They have already concluded a deal at RMB38,500/t (USD5,629/t) VAT excluded ex works early this week.
The source explained, "We received relatively more inquires from buyers and the antimony ingot supply becomes tighter and tighter recently as many smelters like us have reduced the output reluctantly because we could not get enough raw materials." The output of the smelter has been reduced by 50% to around 150 tons.
The source revealed that they have heard a deal concluded at RMB41,000/t (USD5,994/t) ex works and he believes that the market may increase further as the supply of antimony concentrate may become tighter. They will suspend the production around several days later because they have used up the raw materials.

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[+/-] : Magnesium ingot price goes down in Russia

Market sources said that although Russian magnesium market becomes a little active this week, the price which buyers could accept is still very low at around RUB165/kg (USD7,042/t) d.d.p.. Some suppliers begin to sell the materials at low prices due to stock pressure. The mainstream price of magnesium ingot drops to RUB165-170/kg (USD7,042-7,255/t) from RUB170-175/kg (USD7,255-7,469/t) last week.
A Russian trader sold a small batch of magnesium ingot at RUB168/kg (USD7,170/t) d.d.p. this week. The source said that they lower the offer of magnesium ingot to RUB170/kg (USD7,255/t) from RUB175/kg (USD7,469/t) last week due to high stockpile and cash shortage.
"Some local suppliers are afraid of the price drop and sell the materials at low price one after another. I heard that a small amount of deals are concluded at RUB163-165/kg (USD6,957-7,042/t) in the spot market," said the source.The source thinks that the magnesium price may drop slightly in the short term and then keep stable, as the supply of magnesium is not enough in the market."Currently the spot market is in disorder. Traders offer the material ranging from RUB163/kg (USD6,957/t) to RUB175/kg (USD7,469/t)," said another trader in Russia. He said that they hold no stockpile on hand, but they have no intention of supplementing stocks due to the confusing market of magnesium. The source said that the magnesium ingot price may not drop sharply in the short term as the materials they purchased were at high price.

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[+/-] : Magnesium ingot market in a bad mood

Magnesium market is in a bad mood after price reached around USD6,000-6,100/t in warehouse Rotterdam at the middle of June and suddenly started to slide, and this week sources in Europe told Asian Metal that they can buy material at around USD4,400-4,500/t in warehouse Rotterdam while offers from Chinese suppliers are at around USD4,200/t FOB China.
Prediction in the market now is that price will continue to go down as demand of magnesium all over the world remains scanty and bearishness in the market will last since many consumers confirmed plenty material in their possession.
According to a European trader who told Asian Metal that he sold material last week at USD4,420/t in warehouse Rotterdam, all signs show that price will still go down further because there are some Chinese suppliers holding plenty material and will likely to get rid of them because of the decreasing price.
"Chinese suppliers will find it difficult to increase the price again in a short time," said the source. "I am not saying they can not do it, but it will take sometime."
Another European trader agreed that it may take up to end of the year to see the price of magnesium going up again because plenty material in the market will not allow a sudden price increase.
"None of my customers want to buy now," said the source. "All of them are saying they have material and will buy again probably at the end of the year." The source predicted that price may go below USD4,000/t FOB China before end of the this quarter.

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[+/-] : Some magnesium ingot producers reduce output on sluggish market

More magnesium smelters especially in South Shanxi reduce output or even halt production due to the continuously sluggish situation, market sources reported to Asian Metal today.
"We reduced production by 2/3 in the middle of July," said a producer in Jiang county, Shanxi Province whose capacity of magnesium ingot expanded from 10,000tpy early this year from previous 3,000tpy.
"As demand has kept weakening, and prices have also been in decline, we have to reduce our output," said the source. With some materials in stock, the smelter refuses to sell any materials at prices below RMB26,000/t (USD3,807/t) ex works which is said to be its production cost. However, the source has no confidence in seeing a better market in August in view of the weak demand.
Meanwhile, the source revealed that some smelters nearby have already shut down due to either environmental problems or the bearish market.
Another smelter in Shanxi's Wenxi county, with a capacity of 600tpm, halted production in early July. "In the light of current prices of raw materials, the production cost of magnesium ingot should be at least RMB26,000/t (USD3,807/t) ex works in South Shanxi," said the source. "However, few smelters can obtain such a price for now." Therefore, the source has no plan to restart in the short term.
The source learnt that the magnesium ingot market continues to worsen and more smelters have begun to sell at prices of RMB25,300-25,500/t (USD3,704-3,734/t) ex works. "We heard that some small smelters undersold materials at a price as low as RMB24,500/t (USD3,587/t) ex works when cash was urgently needed, but we could not confirm such a low price," said the source.The source also holds a pessimistic attitude towards the future market, believing that the price will probably drop to RMB24,000/t (USD3,514/t) ex works or lower levels soon.

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[+/-] : Manganese flake falls further

1 Aug 08 - Manganese market remains in weak demand and the price falls to RMB20,200-20,500/t (USD2,953-2,997/t) ex works but more suppliers are reluctant to sell for the moment.
A Guangxi-based smelter with a capacity of around 2,000tpm told Asian Metal that few buyers are in the market for the moment. "Demand is still very weak as the stainless steel market remains dull for the moment," said the source who claimed that some suppliers lowered their offers to RMB20,300/t (USD2,968/t) ex works but they offer a much higher price of RMB20,600/t (USD3,012/t) ex works.
The source still keeps a stock of around 200t but is not very willing to sell for the moment. "We still have some long-term contracts to fulfill and the current price is also low for us," said the source who claimed that they might accept a current bid of RMB20,600/t delivered to Guangzhou.
A Hunan-based trader lowered their offers from USD4,100/t FOB to USD4,000/t FOB. "Though the price in foreign markets seems to be high but few buyers are purchasing in the market," said the source who is very pessimistic about the market in August. "The domestic market is also sliding with the price falling to almost RMB20,000/t (USD2,924/t) ex works."
According to the newly published policy from the government, no adjustment is adopted to the manganese briquette export. "Many manganese exporters are very disappointed," said the source. "And maybe more consumers would consider using briquette due to its low prices.
However, the MC and LC FeMn price remains higher than manganese flakes and this also gives birth to some notions that manganese price might be pushed higher in the coming weeks.

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[+/-] : Manganese flake market summary Jul 28-Aug 1

4 Aug 08 - Manganese market falls down in the week after a temporarily rebound to over RMB21,000/t (USD3,070/t) ex works. Sources reported to Asian Metal that more buyers went away from the market when the price went up and demand from downstream stainless steel mills remains dull for the moment. Sources are not so optimistic now.
The price fell down from the highest level of around RMB21,200/t (USD3,099/t) ex works to almost RMB20,000/t (USD2,924/t) ex works. Few buyers are purchasing at the moment while many foreign participants are still on vacation and there is also large stocks there. Some participants lowered their prices to around RMB20,300/t (USD2,968/t) ex works late in the week but others are reluctant to sell at such low prices.
The power supply in some areas remains tight and the manganese production is below capacity. And many small-sized smelters have already been out of production for long. But compared to the low demand, the supply remains sufficient. However, some smelters reported that the supply of raw materials is also tightening which hampers the normal production. As a result, some smelters with low stockpiles at hand insist on higher prices of around RMB20,500/t (USD2,997/t) ex works though few deals are concluded. Suppliers believe that this is the worst time for the market and they hope more buyers would be back to the market in late August or early September and the price should be around RMB21,000/t (USD3,070/t) ex works.
Export market also falls down with few buyers eager to purchase now. The tax adjustment comes out on July 31st but has little influence on the manganese exportation. Some participants are afraid the price might go lower in the coming weeks. Some briquette suppliers lowered their offers to around USD3,250/t FOB again from USD3,400-3,500/t FOB but some others are still very cautious as they usually attach the items to the long-term contracts and if the government changes the export duty, the price should be negotiated one more time. Manganese flakes price also decreased to USD3,950-4,000/t FOB accordingly.
However, the price in warehouse Rotterdam is a bit higher at around USD4,100-4,200/t for the moment but few consumers are purchasing. Sources are not quite confident about the market in August and the price might go down again in the coming weeks.

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[+/-] : European manganese market keeps weak

1 Aug 08 – According to market participants, the European manganese market keeps quiet with few inquiries from consumers, as most people are on holidays during the summer period. Manganese flake prices are reported in the range of USD4,100-4,200/t in warehouse Rotterdam, and Chinese offers in the range of USD4,050-4,150/t CIF Rotterdam.
A European trader holds manganese flake prices to be in the range of USD4,100-4,200/t in warehouse Rotterdam. He is also receiving Chinese offers in the range of USD4,050-4,150/t CIF Rotterdam.
The source claimed that the manganese market is very quiet as most consumers have gone for summer holidays. "We have not received any inquires this week nor concluded any deals. Most consumers keep their production and consumption at minimal during this period of time, and most have enough stocks to last through the summer."
He believes that the demand for manganese flakes would keep weak through the summer but expect demand to grow in the 4th quarter, arguing, "As the productions of European steel mills are still very good, we expect more buying activites when consumers return from the summer holidays to book material for 4th quarter production."
Another trader holds manganese flake prices to be in the range of USD4,100-4,200/t in warehouse Rotterdam. He is also receiving Chinese offers in the range of USD4,050-4,150/t CIF Rotterdam.
The source opined that the slight rise of manganese flake prices in the last week would not continue, reasoning, "Believing manganese flake prices have reached the bottom, some traders came into the market last week to purchase material for positioning in the next quarter. However, the fact remains that we haven't seen buying activities from the end-users."

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[+/-] : Magnesium market expected to keep low

Weak demand continues to hinder the magnesium ingot market from recovering in China. Coupled with the high stockpiles, participants take negative expectations on the future market.
A Shanxi-based smelter, with the capacity of 10,000tpy, cut its output by 1/3 due to the sluggish market. "RMB26,000/t ex works is our bottom line," said the source. "However, few consumers would like to accept such a price."
The source attributes the continuously decreasing prices to the weak demand and oversupply. As long as the market keeps softening, consumers will not resume purchasing. "That's the rule," added the source.
The source holds some stocks on hand and is busy conducting sales for fear that the market may dip further. He learnt that lower prices of RMB25,300-25,500/t ex works have shown up in Fugu, Shaanxi.
A Henan-based trader reported that the trading volume shrank to 100-200tpm in June and July against 400-500tpm in the previous months. "What troubles us most is lack of demand," said the source. "Most consumers are waiting for lower prices."
The source thinks that besides the weak demand in domestic market, the fact that foreign buyers are also sitting on the sidelines is also having negative impact on the magnesium market. As many overseas buyers had considered fully the impact of Beijing Olympics, so they made bulk purchase in advance for the production during and immediately after the Olympic Game.
The source confirmed that although major smelters still insist on the price of around RMB26,000/t ex works, more others have started to sell materials at RMB25,700-25,800/t ex works or even lower prices this week.Both sources are pessimistic about the future market, believing that the price will continue to dip in the following two or three months.

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[+/-] : Some magnesium producers reduce output on sluggish market

More magnesium smelters especially in South Shanxi reduce output or even halt production due to the continuously sluggish situation, market sources reported to Asian Metal today.
"We reduced production by 2/3 in the middle of July," said a producer in Jiang county, Shanxi Province whose capacity of magnesium ingot expanded from 10,000tpy early this year from previous 3,000tpy.
"As demand has kept weakening, and prices have also been in decline, we have to reduce our output," said the source. With some materials in stock, the smelter refuses to sell any materials at prices below RMB26,000/t (USD3,807/t) ex works which is said to be its production cost. However, the source has no confidence in seeing a better market in August in view of the weak demand.
Meanwhile, the source revealed that some smelters nearby have already shut down due to either environmental problems or the bearish market.
Another smelter in Shanxi's Wenxi county, with a capacity of 600tpm, halted production in early July. "In the light of current prices of raw materials, the production cost of magnesium ingot should be at least RMB26,000/t (USD3,807/t) ex works in South Shanxi," said the source. "However, few smelters can obtain such a price for now." Therefore, the source has no plan to restart in the short term.
The source learnt that the magnesium ingot market continues to worsen and more smelters have begun to sell at prices of RMB25,300-25,500/t (USD3,704-3,734/t) ex works. "We heard that some small smelters undersold materials at a price as low as RMB24,500/t (USD3,587/t) ex works when cash was urgently needed, but we could not confirm such a low price," said the source.
Asianmetal(English) http://www.asianmetal.com 0394
The source also holds a pessimistic attitude towards the future market, believing that the price will probably drop to RMB24,000/t (USD3,514/t) ex works or lower levels soon.

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[+/-] : Magnesium ingot export prices down further

1 Aug 08 – The magnesium export price goes down further due to lack of consumer demand. Suppliers worry that the price may continue to slip in August when most European buyers are absent for summer holidays.
A Shanxi-based smelter has not concluded any export deals since early July and reported that only two or three tentative inquiries have been received. "We don't bother to make offers as we're aware that foreign buyers have no intention of buying," said a sales executive from the smelter.
The source offered at USD4,500/t FOB Tianjin last week without any deals concluded and reported that most suppliers have decreased offers to USD4,300-4,400/t FOB this week. However, the source revealed that little activity is seen in the export market.
Meanwhile, the source reported that the domestic market also remains dull with prices sliding down slowly and steadily. It is hard for them to sell magnesium ingot at RMB25,800/t ex works for now. The smelter is running at less than half of its capacity of 10,000tpy at the moment.
A Beijing-based trader confirmed the sluggish market for export and was surprised to receive a counter bid as low as USD3,800/t FOB China made by a Korean buyer. "Such a bid is far lower than USD4,300/t FOB China, which is the lowest price we can accept now," said the source.
The source reported that demand from Europe, Japan, Koran and India is very weak. Many dealers have ceased buying as their customers do not place orders with them.
A major Ningxia-based producer echoed that few foreign buyers are in the market. The source has reduced offers from USD4,400/t FOB early this week to current USD4,300/t FOB, but buyers still show no interest.

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[+/-] : Manganese market inactive in China

31 Jul 08 - Manganese market goes inactive though the suppliers lowered their offers slightly due to low demand in summer. Sources reported that the price has been around RMB20,200-20,500/t (USD2,971-3,001/t) ex works but still few deals are concluded.
A Hunan-based smelter who just delivered some materials concluded last week at around RMB20.800/t (USD3,045/t) ex works told Asian Metal that though the supply in domestic market remains tight, the price goes down again to below RMB20,500/t (USD3,001/t) ex works. "Few buyers are purchasing at the moment. And the market might be very dull in August," said the source who still owns about one cargos of stocks at hand.
The source claimed that manganese production in the local area is abnormal due to the power shortage and the supply of raw materials is also tightening. The source claimed one major smelter just closed in the area and they are also running at half of the capacity of 12,000tpy. The source believes few suppliers have large stocks at hand. "Actually, we are not so eager to empty the stocks at the moment and there is no meaning for us suppliers to lower ther price before any one makes an offer."
Another Hunan-based trader still quotes USD4,050/t FOB but received no reply recently. The source claimed that manganese price is rising in European markets but as fewer buyers are purchasing from China for the momen, they could not sell a good pricet. "We learnt some deals were concluded at around USD3,950-4,000/t CIF Rotterdam, which we think too low for us," said the source who feels hesitant to conclude a deal at current price level of around USD3,950-4,000/t FOB. "The price in foreign markets is rising and we hope the buyers would find our offer workable in the coming weeks."
however, the source is not quite confident about the market trend. "We don't know how long could the higher prices last in warehouse Rotterdam as demand would remain weak in the coming weeks," said the source who claimed that the domestic price decreases to RMB20,200/t (USD2,971/t) ex works for the moment.

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[+/-] : European manganese market keeps weak

1 Aug 08 – According to market participants, the European manganese market keeps quiet with few inquiries from consumers, as most people are on holidays during the summer period. Manganese flake prices are reported in the range of USD4,100-4,200/t in warehouse Rotterdam, and Chinese offers in the range of USD4,050-4,150/t CIF Rotterdam.
A European trader holds manganese flake prices to be in the range of USD4,100-4,200/t in warehouse Rotterdam. He is also receiving Chinese offers in the range of USD4,050-4,150/t CIF Rotterdam.
The source claimed that the manganese market is very quiet as most consumers have gone for summer holidays. "We have not received any inquires this week nor concluded any deals. Most consumers keep their production and consumption at minimal during this period of time, and most have enough stocks to last through the summer."
He believes that the demand for manganese flakes would keep weak through the summer but expect demand to grow in the 4th quarter, arguing, "As the productions of European steel mills are still very good, we expect more buying activites when consumers return from the summer holidays to book material for 4th quarter production."
Another trader holds manganese flake prices to be in the range of USD4,100-4,200/t in warehouse Rotterdam. He is also receiving Chinese offers in the range of USD4,050-4,150/t CIF Rotterdam.
The source opined that the slight rise of manganese flake prices in the last week would not continue, reasoning, "Believing manganese flake prices have reached the bottom, some traders came into the market last week to purchase material for positioning in the next quarter. However, the fact remains that we haven't seen buying activities from the end-users."

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