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Chinese manganese production in trouble till Lunar New Year

Steel News - Published on Tue, 09 Nov 2010

It has been anticipated that the production of electrolytic manganese metal in China will be probably troubled until Lunar New Year (in the first half of February of 2011) is over, and this view has been spread over to the domestic market of China, having caused an anxiety for supply of this metal.

Therefore, domestic price of electrolytic manganese metal in China has risen considerably for the last 2 weeks, having resulted in a frenzy, and has reached a level of CNY 18,800 to CNY 19,200 per ton ex plant, which is certainly the highest one in 2010. Domestic price of electrolytic manganese metal in China in the middle of October was CNY 17,500 to CNY 17,600 per tonne ex plant and accordingly, the latest price of this metal has had a sharp rise of CNY 1,300 to CNY 1,700 per tonne.

The reasons, why price of Chinese electrolytic manganese metal has currently risen to a large extent, have been already mentioned but the main factors are repeated as follows

1. The output of manganese carbonate in Hunan Province has decreased substantially (the regulations have driven an entire stoppage of mining in Huaheng district) and the difficulties to secure raw material have arisen.

2. Guangxi Zhuang Aut. Region and Guizhou Province are main bases to produce electrolytic manganese metal in China but, owing to the absolute cut of electricity supply, have been enforced to reduce their production of this metal (regulations for exhaust of carbon dioxide have caused to decrease the volumes of electric power to be generated)
3. Xiushan area of Chongqing Municipality and Songtao area of Guizhou Province have been producing manganese ore in order but, when they sell this manganese ore to other provinces, the sales become the objective case to impost duty, and domestic distribution of raw material is unable to go on smoothly

The matter in question is that this tightness on supply of electrolytic manganese metal in China is anticipated to continue until the time, when Lunar New Year is over, but the reasons of (1) and (2) as mentioned above are due to the composition in production of electrolytic manganese metal in China, having included the circumstances for environmental pollution, and this problem is thought to have deeply rooted.

Reflecting this aspect of the market in China, the price of electrolytic manganese metal to be offered for export from China has risen too. The suppliers concerned have offered on the end of last week Chinese electrolytic manganese metal at USD 3,750 per tonne CIF Japan, having risen by USD 300 per tonne compared to that prevailed in the middle of October. The active inquiries for electrolytic manganese metal from European countries, Japan and South Korea have been placed before Chinese suppliers. The actual contract has been already concluded on the end of last week at USD 3,750 per tonne CIF Japan for shipments within this year. It is now marked to see how extent does this price of Chinese electrolytic manganese metal move in this week.

(Sourced from The TEX Report)

Posted By : admin on Tue, 09 Nov 2010
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