TEX reported that price of the manganese metal in China recovered early February 2012 after it had gradually dropped during January 2012. The recovery was, however, not so powerful, i.e. price rose by CNY 400 to CNY 500 per tonne and only until mid month, when the price got out of steam. At the month end it started to slide through to early March 2012 by CNY 200 to CNY 300 per tonne and came back to the almost the same level as it had been before the New Year Holidays.

Price changes in the market were (Mn: 99.7%, from Hunan for domestic users, ex warehouse basis with tax prepaid) CNY 15,000 to CNY 15,200 per tonne on January 30th 2012, CNY 15,100 to CNY 15,300 per tonne on February 3rd 2012, CNY 15,400 to CNY 15,600 per tonne on February 9th 2012, CNY 15,400 to CNY 15,600 per tonne on February 17th 2012, CNY 15,300 to CNY 15,500 per tonne on February 24th 2012, CNY 15,300 to CNY 15,500 per tonne on February 29th 2012 and CNY 15,000 to CNY 15,200 per tonne on March 5th 2012.

The temporary price rise of early February 2012 was partly because of the higher production of 200's stainless steel (Mn alloyed) which caused spot buying by the mills of the metal under the comparatively higher LME nickel price at over USD 20,000 per tonne. Stimulated by the price pick up, manganese producers resumed operation at the idled capacities and then supply and demand became balanced, so the price did.

However the price eventually started falling from the month end because nickel price dropped and demand for the stainless steel products from both export and domestic sectors did not improve, making the SUS mills to curtail production including the 200's, while the resumed capacities continued to supply metal to the market. Without a big hope of revival in demand in the short run, producers are apparently probing for market interests by lowering their offer prices little by little.

Source - TEX Report Limited

(www.steelguru.com)