Chinese manganese flakes prices keep falling
Due to the increasing operating rate of Chinese manganese flake plants and weak downstream demand, most market participants are pessimistic about the future market, so prices for manganese flake continue to decline. Currently, mainstream prices for manganese flake 99.7%min are RMB11,800-12,000/t (USD1,696-1,724/t) EXW D/P, down by RMB300/t (USD43.11/t) from early last week. Given the demand would remain weak, insiders predict prices for Chinese manganese flake 99.7%min would move down further in the coming week.
A consumer in Southwest China noted the price for manganese flake 99.7%min he received was RMB12,000/t (USD1,724/t) delivered D/P, down by RMB300/t (USD43.11/t) from early last week. He bought 64t at RMB12,300/t (USD1,767/t) early last week, down by RMB200/t (USD28.74/t) from the price of mid-February when he purchased 100t. "With Chinese manganese flake plants resuming work, the market supply increases gradually and prices for the material tend to drop. But we purchased 64t last week because of the urgent need," said the source. Suppliers show strong willingness to sell, and the buyers could ask a concession of RMB200/t (USD28.74/t) at least when the supplier offer RMB12,000/t (USD1,724/t). Given the increased operating rate and supply, the consumer predicts prices for Chinese manganese flake 99.7%min would move down further in the coming week.
With an annual consumption capacity of around 3,600t for manganese flake 99.7%min, the consumer used about 300t in January and expects the same volume this month, holding about 50t of stocks now.
A trader in North China offers manganese flake 99.7%min at RMB11,900/t (USD1,710/t) delivered to ports D/P and can accept a concession of RMB100/t (USD14.37/t), down by RMB200/t (USD28.74/t) from late last week. He sold 100t at RMB11,900/t (USD1,710/t) late last week, down by RMB500/t (USD71.84/t) from early last week when he sold 80t. "Given the low cost of our stocks and the falling market prices at present when the operating rate of domestic manganese flake plants is recovering, we are still in a hurry to sell," said the trader. Most of his customers are pessimistic about the market outlook with little interest in purchasing, so he predicts prices for Chinese manganese flake 99.7%min would drop further in the coming week.
With a regular trading volume of around 1,000t for manganese flake 99.7%min, the trader sold around 1,000t in last month and expects around 1,200t this month, holding about 300t of stocks now.
