Spot offers for Chinese electrolytic manganese metal, or EMM, on a FOB basis have halted the downward trend seen since March, market sources said Friday.
Despite the prevailing weak overseas demand, sources said Chinese domestic prices had seen a rebound amid tightening supply in the market.
Platts lifted the 99.7% manganese export price to $1,640-1,720/mt FOB China Friday, from $1,640-$1,690/mt a week ago on higher bids and offers heard.
"This week, the Chinese domestic price has gone up. We are offering at Yuan 10,500/mt ex-works, up about Yuan 500/mt from last week.
There has not been a significant change in the demand. In fact, demand has remained weak.
The only reason for the higher domestic offer is the tightening supply," said a south central China-based producer.
He added that he had also lifted his export offers to $1,750/mt FOB, up $50/mt from last week due to the higher domestic price.
"The overseas demand is still very weak and I have not done any export trades for a while," he said.
A northwest China-based trader also heard the rise in the domestic price to around Yuan 10,500/mt this week.
"Previously, some plants have cut or stopped production on weak prices in order to reduce to supply in the market. The move is only starting to take effect now. It's too early to its the price is recovering. At least, it is not falling anymore. Export offers will likely to rise slightly due to the higher domestic price despite the current persisting weakness in overseas buying interest," the northwestern Chinese trader added.
Last week, the northwestern Chinese trader reckoned tradable offers for Chinese EMM around $1,700/mt FOB based on Chinese domestic around Yuan 10,200/mt ex-works.
A South Korean trader said: "Yes, I heard that stocks in China are falling due to the previous production cut which have reduced the supply.
Chinese prices have stopped falling this week and export offers might rise slightly."
Last week, this South Korean trader reckoned that export offers for Chinese EMM to be around $1,650/mt FOB China.
A Japanese trader, however, said the weak iron ore, stainless steel and nickel prices would continue to exert pressure on EMM offers.
