Manganese flakes exportation in stagnation

Manganese flakes market remains dull while the whole economy is in recession. Sources reported that though most suppliers insist on offers of around USD2,200-2,300/t FOB, still few deals are concluded.
A Hunan-based exporter told Asian Metal that they failed to receive any inquiry in the last two weeks while most foreign buyers are just watching and waiting for the price to drop to the bottom line. "Who knows what the bottom line is," said the source reported that the prices the foreign buyers claimed at around USD2,300/t in warehouse Rotterdam is unprofitable for most Chinese suppliers. "We still insist on USD2,300/t FOB. If you are not satisfied, no deal can be concluded."
The source said that most smelters at the moment have already been out of production while those still in operation also bear great pressure of losses if they cannot get a good price. "The Customs would also be a hindrance if the price is too low. You will have to pay higher taxes according to the price floor," said the source who decides to expand some domestic business for the moment while the export market is so dull and volatile.
A trader from East Asia is reported to have cut down their purchasing volume in the coming months. "It's normal for us to reduce the quantity as the stainless steel market is also very low with most mills cutting production," said the source who still hold a very low expectation towards the future market. As the source sees it, most major smelters in China are still in operation though under capacity. "So manganese supply is still sufficient and the price still faces great pressure of dropping from current USD2,200-2,300/t FOB."
The source believes most consumers are already covered with enough materials needed in the rest of the year and few deals would be concluded. "The Chinese domestic market seems to be in better condition and so more suppliers would consider selling in domestic market instead of the export market." As a result, manganese export price might stay at the current price in the near term.