17 Jul 08 - Manganese market keeps firm with the suppliers raising their offers to RMB20,000-20,500/t (USD2,937-3,010/t) ex works. Sources reported to Asian Metal that as the supply is decreasing in spot market, thereby many suppliers are holding back from selling, expecting a higher price later this month or in August.
A Hunan-based smelter who still has some deals to fulfill told Asian Metal that they keep few stocks at hand now. "Domestic market is slightly moving up from below RMB20,000/t (USD2,937/t) ex works," said the source who now offers RMB20,400-20,600/t (USD2,996-3,025/t) ex works. The source claimed it may take some time for buyers to get accustomed to the higher prices, but he is confident that demand would go stronger in the coming months and the buyers have to accept higher prices.
However, the source claimed that export market remains weak. "With many foreign participants on vacation, we receive few inquiries at the moment, and the price is also very low at below USD3,800/t FOB," said the source who stops offering for export now.
Another Hunan-based supplier sold out the stocks of two cargos at RMB21,000/t (USD3,084/t) delivered. "Many smelters in the area cut down or halted production, and it's difficult to fetch large quantities of of the material, " said the source who believes the suppliers are expecting higher prices due to the decreasing supply. "Suppliers are confident that the market would be warmer next month, so they would rather wait for some while."
But there are still some suppliers offeing prices of slightly lower than RMB20,000/t (USD2,937/t) ex works. "Some smelters might be facing financial difficulty and have to sell some material to collect cash," said the source who learnt some suppliers offer RMB19,800-19,900/t (USD2,907-2,922/t) ex works.
A Hunan-based smelter who still has some deals to fulfill told Asian Metal that they keep few stocks at hand now. "Domestic market is slightly moving up from below RMB20,000/t (USD2,937/t) ex works," said the source who now offers RMB20,400-20,600/t (USD2,996-3,025/t) ex works. The source claimed it may take some time for buyers to get accustomed to the higher prices, but he is confident that demand would go stronger in the coming months and the buyers have to accept higher prices.
However, the source claimed that export market remains weak. "With many foreign participants on vacation, we receive few inquiries at the moment, and the price is also very low at below USD3,800/t FOB," said the source who stops offering for export now.
Another Hunan-based supplier sold out the stocks of two cargos at RMB21,000/t (USD3,084/t) delivered. "Many smelters in the area cut down or halted production, and it's difficult to fetch large quantities of of the material, " said the source who believes the suppliers are expecting higher prices due to the decreasing supply. "Suppliers are confident that the market would be warmer next month, so they would rather wait for some while."
But there are still some suppliers offeing prices of slightly lower than RMB20,000/t (USD2,937/t) ex works. "Some smelters might be facing financial difficulty and have to sell some material to collect cash," said the source who learnt some suppliers offer RMB19,800-19,900/t (USD2,907-2,922/t) ex works.
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