China electrolytic manganese metal (EMM) export prices rise as domestic demand t

Spot export prices for Chinese electrolytic manganese metal grew this week as overseas buyers compete with domestic steel mills for limited supply.

The S&P Global Platts weekly 99.7% manganese metal assessment has firmed to $2,580-2,630/mt FOB China Friday, compared with $2,550-$2,600 as of August 17. A Chongqing producer reported selling a cargo to Japan this week at $2,650/mt CIF basis.

"Regardless of the price, if the factories are in urgent need of EMM, they need to procure it at the market price," the Chongqing producer said.

Export offer prices were heard at $2,620-$2,650/mt FOB basis this week, compared with $2,580-$2,650/mt last week.

Market sources are saying that prices will stabilize at this level in the near term unless fundamentals are drastically impacted.

"Small producers, should they cut production, will not be able to create much ripple on the market as they are too small," an east Asian buyer said.

Ningxia Tianyuan, the world's biggest EMM producer, has a production capacity of 800,000 mt/year, and makes up 50-60% of China's output. Ningxia Tianyuan had reduced output run rate by 500 mt/day effective May 17 to conduct an overhaul on an old production line.

Chinese export EMM prices have since, seen a 36% rise from $1,915/mt from May 18.

Market talk is that the old production line has not resumed previous productivity to date. Ningxia Tianyuan could not be reached Friday for comment.

"No matter how you see it, the producers are already the winners...Despite the slight dip in prices recently, we might be seeing a new price floor," a Chinese trader said.

Domestic ex-works spot prices, meanwhile, were indicated this week at Yuan 17,500-17,700/mt ($2,545-$2,575), compared with Yuan 17,200-17,500/mt a week ago.