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Anticipation of Price Fall of Manganese Metal in China Grows-The 16th China(Guangzhou)Int'l Stainless Steel Industry Exhibition
3/25/2015 Stainless Steel Exhibition |
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The downward pressure on the price of electrolytic manganese metal in the Chinese domestic market has again become strong. This is because the stainless steel mills in China has entered on the adjustment in production owing to slumping prices of 200-series stainless steel, which leads to anticipation of decreased consumption of manganese metal.
At the present moment, the main price meant for domestic consumption is CNY11,600 - CNY11,700 per ton, down by CNY200 from the end of February, but the present price has stopped declining for a period of time. The supply volume to the market tends to increase, but it has become a power of resistance that major producers dislike a price cut and the recovery in production is delayed in the southern area.
However, the contract price of CNY11,500 ore below this for a small lot is sporadically seen, and many of market participants predict the price will be down further if the increased supply volume strengthens the price downward pressure. In spite of the price remaining in the long-term doldrums, the producers'' operating rates were not down much from early March, whereas the oversupply in the market is thought to become enlarged due to decreased consumption by the stainless steel mills.
The demand for export is weak, and the trading is thin because most of shippers refrain from buying due to anticipation of a price fall and stay clear of a high price.
For a reference, the application of a comparatively high electricity rate for a low-water season is anticipated to be over in the southern area within March, and it will be a likely case that the resumption of producers'' operation will get into full swing and the supply volume will be up, which leads to a drastic price cut.
-The 16th China(Guangzhou)Int''l Stainless Steel Industry Exhibition
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