China`s electrolytic manganese metal prices rise on tightening supplies: sources
Source: www.chinamining.org Citation: Platts Date: August 08, 2014
Chinese electrolytic manganese metal prices rose this week on tightening supplies in the market, sources said Thursday. Major electrolytic manganese metal producers in China have kept their run rates lower due to continued maintenance checks and poor demand in the market.
Platts assessed 99.7% manganese at $2,050-2,080/mt FOB China Thursday, an increase of 1% or $20/mt from the previous week.
Industrial sources peg domestic demand ex-works prices at Yuan 12,700/mt ($2,059/mt), up Yuan 200/mt or 1.6% on week.
A Shenzhen-based producer said that they are still maintaining their run rates at 70%.
"We are still undergoing maintenance checks at our plants and would likely resume 100% run rates in October," said the producer source. He said that they had delayed their original plan to restart operations at one of their production lines in September.
Despite the delay, the producer source said that they managed to sell about 120 mt of electrolytic manganese metal to Japanese buyers at $2,100/mt FOB China.
The producer source also added that several domestic manganese ore mines were undergoing safety checks, hence, supply of manganese ore to several electrolytic manganese metal producers were affected.
However, a Shaanxi-based trader said that prices of domestic manganese ore were still unchanged and the recent disruption from the manganese ore mines "would not drastically affect the output of manganese metal producers", instead, he reasoned that reduced run rates due to maintenance checks by producers was the main reason for the price increase.
Industry sources peg domestic 15%-Mn Ore at Yuan 650-660/mt delivered to manganese metal production plants, unchanged on week. About 8-10 mt of 15%-Mn ore is required for every mt of manganese metal produced.
A Beijing-based Japanese trader said that he had received offers from Chinese sellers at around $2,060/mt FOB China. However, he said that prices were still too high and he had no intention to purchase material. He also added that the Japanese market would be quiet next week due to upcoming festivities. Hence, he said that prices would likely stay stable next week.
Electrolytic manganese is commonly used as an alloy agent for steel production. China is the largest manganese electrolytic metal producer in the world with about 90% of global production.
About CHINA MINING
Since first held in 1999, the scope and influence of CHINA MINING has grown rapidly year by year. As a global mining summit forum and exhibition, CHINA MINING Congress and Expo has become one of the world’s top mining events, and one of the world’s largest mining exploration, development and trading platforms, covering all aspects of the whole mining industry chain, including geological survey, exploration and development, mining rights trading, mining investment and financing, smelting and processing, mining techniques and equipment, mining services, etc. playing an active promotion role in creating exchange opportunities and enhancing mutual cooperation between domestic and foreign mining enterprises.
CHINA MINING Congress and Expo 2014 will be held at Meijiang Convention and Exhibition Center in Tianjin on November 20th-23rd, 2014. We invite you to join the event and to celebrate the 16th anniversary of CHINA MINING with us. For more information about CHINA MINING 2014, please visit: www.chinaminingtj.org.
