Chinese manganese flake still in tight supply

BEIJING (Asian Metal) 11 Jan 13 - The production of manganese flake remains low in China, many producers hold no stocks in hand and just sell for futures market. Participants reveal that the ex-works price of manganese flake keeps stable at RMB13,400-13,600/t.

A Hunan-based manganese producer tells Asian Metal that he still offers RMB13,500/t for manganese flake, but he can not provide any goods for the spot market at this moment. "We can only deliver in late this month for end users who placed orders these days," said the source.

With a production capacity of 1,500-2,000tpm, the source states that he just releases one of the four production lines, reducing the output to below 500tpm. "I think the price will keep firm in the short term," adds the source, "Because the supply of raw materials like manganese ore is tightening due to the bad weather."

A Guangxi-based producer confirms that the price keeps stable temporarily, quoting RMB13,600/t for manganese flake. "The price in Guangxi is RMB100/t higher than those in other leading production sites," said the source, "And it is harder to purchase manganese now as the operating rate runs at a lower level."

"Most medium and small-sized producers have suspended the production, while over 90% of manganese flake in leading ones have been booked up by their regular domestic and foreign purchasers," he adds. Therefore, he agrees that the price is likely to keep firm before the Spring Festival as the social stock will maintain at a relatively low level.