Monday, March 22, 2010

Manganese flake production cost keeps firm

Participants reported to Asian Metal that manganese flake price went down to about RMB14,800-15,000/t (USD2,167-2,196/t) ex works last week, and however manganese production cost keeps firm these days. As manganese ore price and vitriol price keeps high, smelters are reluctant to sell.


A manganese flake smelter in Hubei, with an output of about 1,600tpm, revealed to Asian Metal that manganese flake price went down to about RMB14,800-14,900/t (USD2,167-2,182/t) ex works, and if the price continues to decrease to below RMB14,800/t (USD2,167/t) ex works, some smelters who depend on buying manganese ore have to halt production for negative profit, with the firm production cost.


"I singed an order of about 300t of manganese flake at RMB14,900/t (USD2,182/t) ex works last Friday, and most consumers are still holding a hesitant attitude about the future market. I think there is not much room for the price to decrease," said the source. Putting the export offer at RMB2,850/t FOB, he does not make any export deals these days.


Another manganese flake smelter in Chongqing, with an output of 900tpm, reported to Asian Metal that he sold about 300t manganese flake at RMB14,900/t (USD2,182/t) ex works to both steel mills and a trader last Thursday, and current manganese price is about RMB14,800-15,000/t (USD2,167-2,196/t) ex works. "Some smelters sell at RMB14,800/t (USD2,167/t) ex works to return the capital quickly, but most smelters are reluctant to sell at this price," said the source.


While manganese ore and vitriol price keeps high, and selenium dioxide price is about RMB500/kg (USD73.21/kg), manganese production cost still keeps firm, reported the source, thinking the price does not decrease continuously.

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