Ample supply, lower tender prices dampen sentiment for manganese prices post-CNY
Prices of manganese in China's major production areas held flat over the week ended Friday February 1st, at 13,200 CNY/MT ex-work in cash, amid limited transactions ahead of Chinese New Year.
While sellers showed an inclination to firm up offers after the holiday, as CNY suspension across miners bolstered costs in manganese production, downstream buyers remained skeptical about higher prices considering sufficient supplies in the market.
During CNY, the scale of suspension and production cuts across #200 stainless steel plants exceeded that at manganese smelters, and this may result in an ample supply of manganese products after holiday.
At the end of January, South Korean steelmaker Pohang Iron and Steel Company (POSCO) lowered its purchasing price of manganese to $1,930/mt CFR in a February tender.
This lost $70-110/mt from its purchasing prices in January, which also dampened the market confidence in manganese prices in February. Procurement volume stood at 2,565 mt for February.
Separately, Xiangtan Iron & Steel of Hunan Valin settled its latest purchasing price of manganese metal nodule at 14,500 CNY/MT on acceptance, tax and transportation cost included. This was unchanged from the previous tender, with procurement volume of 1,200 mt.
We expect thinner trades next week during CNY breaks, and this may keep prices stable on the week.
