Manganese Market Update (August 9, 2012)

The summer doldrums continue to weigh on manganese prices as steelmakers cut their orders due to seasonal slowdowns and planned plant maintenance. Over the last week, the spot price of European manganese flake has slipped to $2,650 to $2,750 a tonne, down from $2,800 to $2,850 at the end of July, according to Metal-Pages.

But there are some macroeconomic pressures weighing on the price, too. The ongoing debt crisis in the Eurozone, for example, is prompting many countries to put off expanding. That’s hurting steel demand because manganese is a key element in steelmaking.

“It’s very quiet. We’re in the summer months so obviously demand is down. But I think there’s also an underlying softness right now and the sentiment is definitely weaker,” said one dealer.

In China, the world’s top manganese producer, prices fell to RMB12,800 to RMB13,000 a tonne from RMB13,200 to RMB13,400 a tonne last week, Metal-Pages states. The latest price is below production costs for some companies, and has forced them to slash their output or shut down.