Manganese flakes offers still rising but buyers reluctant to purchase

Manganese offers go up to almost RMB14,000/t (USD2,050/t) ex works but few deals can be concluded at prices above RMB13,500/t (USD1,977/t) ex works. Sources reported that the buyers feel reluctant to enter the market now for fear that the price would go higher once they accept such a high price. Actually, the downstream market is not so promising for the moment.
A Hunan-based smelter offering RMB14,000/t (USD2,050/t) ex works told Asian Metal that they received many inquiries these days. "While we only have about one to two cargos of stock at hand, we are in no hurry to sell for the moment as the price is still rising," said the source, thinking that most smelters still have not fully resumed production and manganese supply is not very sufficient for the moment.
The source reported that many foreign buyers also start to arrange some deals, expecting that manganese export price would also move up soon. "Many suppliers already have raised their offers to USD2,450/t FOB though the buyers are reluctant to purchase at above USD2,350/t."
The source believes manganese demand would keep strong in the coming weeks while most consumers only have very limited stock at hand. But the source is also cautious that more smelters would resume production, seeing the price going up. The source claimed that as the downstream stainless steel market needs time to recover, it is better not to resume wholly too fast.
A Jiangsu-based buyer confirmed that the suppliers are raising their price significantly on expectation that the downstream industry would enter the market soon to place orders for the coming months while the stainless steel market already achieves some improvement. The source confirmed that many consumers might not have much material at hand but as it takes time for the demand to increase, it is impossible for the price to hike so quickly to RMB13,000-14,000/t (USD1,903-2,050/t) ex works.
According to the source, many major smelters already have placed some orders at much lower prices of about RMB12,000-12,400/t (USD1,757-1,816/t) ex works in last two months. The source believes manganese price would soon return to a normal level in the range of RMB12,000-12,500/t (USD1,757-1,830/t) ex works again.