Tuesday, June 3, 2008

Rising Production Costs Set To Fuel Further EMM Price Rises

Domestic ex-works price of Chinese electrolytic manganese remained stable at the beginning of June, at the May-end level of RMB23,500-23,700/mt. Quoted prices in the export market were around USD4,400-4,500/mt FOB.

Price of raw materials for electrolytic manganese also show an upward trend with the quoted price of 16% manganese carbonate powder expected to break through RMB1,000/mt. Ex-works price of sulphuric acid is around RMB2,130/mt in Hunan, an increase of around RMB100/mt from the end of May.

Meanwhile, production at the manganese ore mines in Chongqing has been temporarily suspended, which would tighten the supply of manganese ore.
Insiders believe that the tight supply and rising price of raw materials would lead to difficulties in electrolytic manganese production and a higher price.

Source: www.ferroalloys.com

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