The price of electrolytic manganese metal in China has shown an upward trend since mid May and the main offer price on May 29 meant for the Chinese domestic market was CNY 12,200 to CNY 12,300 per tonne up by CNY 400 from the end of April. Besides, such a view is prevailing in the market as the anticipation of a price hike on a short-term basis.
In the southern region as a main producing region for Chinese electrolytic manganese metal, the application of cheap electricity rate for a full water season will start from June. For that reason, although the production is expected to increase, the feeling of tight supply for spot goods has come up due to the increased consumption of stainless steel mills currently going ahead, which resulted in continuous price hike.
Furthermore, this week, one of major stainless mills in China submitted its buying offer for June delivery of the quantity being 2,500 tonnes (up by 700 tonnes from the prior month) and the price being CNY 13,650 (delivered at factory), up by CNY 450 from the prior month respectively, which has become a factor to support producers’ strong selling offer. The range of this price hike is equal to about USD 70 in US currency.
At the moment, the high-priced offer like CNY 12,500 per tonne seems to be seen occasionally in the market.
Source – The TEX Report