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Spot export offers for Chinese electrolytic manganese metal, or EMM, on an FOB basis
jumped amid limited available material in the market and news of environmental checks
in major EMM producing areas of Hunan, Guizhou and Guangxi from April onwards whic
h may affect production, industry sources said Friday.
The 99.7% manganese export price assessment was lifted to $1,950-$2,000/mt FOB
China Friday, up from $1,780-$1,830/mt last week as higher bid and offers heard.
"EMM offers have jumped sharply early this week to Yuan 10,300/mt ($1,496/mt) and
$1,870/mt FOB China on news of environmental checks in Hunan and Guangxi.
Market participants are anticipating a further hike to Yuan 13,500/mt ex-works and $2,00
0/mt FOB China due to the upcoming environmental checks," said a south China-based
trader.
A south central China-based producer agreed but said FOB offers were higher at the
$1,900/mt level and ex-works offers at Yuan 13,300-13,500/mt.
"There's no significant change in the buying but the supply is tight," the southern Chines
e producer added.
A northwest China-based said quite a lot of stocks had been bought up when the domest
ic price had fallen below Yuan 10,000/mt earlier on.
He added that many plants had stopped offering as they were not expecting this current
sharp hike.
"It's Friday now, and weekend in near. Most prefer to wait until next week. Ex-works offers
are at Yuan 13,500/mt and FOB offers are more than $1,900/mt, maybe around $1,950/
mt at least," said a northwestern China-based trader.
Another south China-based producer said they had stopped offering.
"EMM offers have climbed above Yuan 13,000/mt ex-works to Yuan 13,300-13,500/mt.
The main concern is the upcoming environmental checking in Guizhou which is major
EMM producing area. Any shutdown will affect the already tight supply in the market.
FOB offers should at $1,950-2,000/mt given current domestic level at Yuan 13,300-13,5
00/mt. However, FOB offers can't catch up," this southern central Chinese producer add
ed.
A South Korean trader, who was trying look for stocks at the $1,900/mt level on CIF Bus
an basis, said: "I can't find any material at the $1,900/mt level. I heard offers at as high
as $2,070/mt CIF Japan."
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