Manganese flakes export market sees stronger demand

9 Sep 08 - Manganese market sees stronger demand from foreign buyers when most of them have been back from vacation, but the offers from Chinese suppliers remain low at the moment.
A Hunan-based supplier who offers USD3,800/t FOB told Asian Metal that they received many inquiries these two days. "One Spanish buyer inquiried 150t for manganese ingot, to be delivered late this month and another Germany trader asked for two cargos of manganese flakes to be delivered in early October," said the source who still holds some stocks at hand. The source claimed that the low prices might attract more foreign buyers to place orders. "And the buyers also need to consider purchasing raw materials for their production in the fourth quarter this year or early next year."
The source claimed that some suppliers might be willing to offer much lower prices at the moment to release part of the stocks. "No one is sure how the future market would go even if demand slightly goes stronger," said the source. "And some deals in larger quantities are concluded at prices of around USD3,750-3,800/t FOB."
Another Hunan-based trader also received some offers from foreign buyers. "Our offer is around USD3,850t FOB," said the source who thinks the price very workable for them at the moment. The source does not expect the market to move down further. "Even if the profits keep dropping, we believe more smelters would cut down their production to reduce supply, which may lead to a stable market if not a upward one."
AThe source claimed that many foreign buyers woulld just leave aside very small stocks at hand and might have to return to the market for some material. "Thus demand of the market might increase though it may not be strong," said the source who blames the slowing down global economy for the sluggish manganese market.