Manganese Market Update (March 1, 2012)

By Adam Currie Exclusive to Manganese Investing News

Manganese flake prices traded within a tight range across February, beginning the period at $2,875 per metric ton (pmt) and averaging $2,869 until February 28. Manganese Flake FOB prices in China have risen from $3,050 pmt to 3,150 pmt during the same period.

According to a recent price analysis, demand for manganese alloys had decreased as Chinese steel production has declined. In mid-2011 Chinese steel production rates were around 700 mt, but for 2012 is projected to be approximately 615-620 mt.

“We will see some improvement in steel production in China and it will be driven more by cheaper development projects like social and commodity housing not the higher end projects,” a trader commented earlier this month.

“European debt issues are unlikely to have a big impact on Chinese output. Europe is not a commodity story and hasn’t been for 20 years, but it is a financial story, so it won’t impact China’s steel output too much,” he added.