Weak prices of electrolytic manganese in China

Looking back at the first half of 2023, the overall trend of the electrolytic manganese market was mainly dominated by the downward trends. Due to the severe imbalance between supply and demand, the overall recovery of the market was slow. Although the implementation of the production halt and reduction plan made efforts to maintain market balance, the performance effect did not meet the ideal standard, which made demand side procurement more cautious. Moreover, the impact of overseas demand in the first half of the year also continued to weaken, and the bidding pricing of overseas steel mills continued to decline, The mutual influence between domestic and foreign markets has led to sustained market weakness. In the first half of the year, the overall price of electrolytic manganese showed a "ladder like" downward trend

From January to May 2023, the total export volume of electrolytic manganese from China was about 143200 tons, a decrease of 5114 tons compared to last year. The total export volume from January to May last year was about 148200 tons, a year-on-year decrease of about 3.45%, with an average monthly export volume of 28400 tons. Currently, the third quarter is approaching, and the summer break period in the European market is beginning, and overseas demand is also entering the off-season. According to a survey by Hainan West Asia Ferroalloy Group, the cost inversion phenomenon in the overseas market is relatively serious, Short term recovery is still an issue.

With the slow recovery of the downstream market this year, market prices have started to decline, and the electrolytic manganese market has been replaced more by manganese iron, silicon manganese, and other products. The weakening of market demand has led to a decrease in steel bidding prices. After May, the policy of the electrolytic manganese market changed, and the bidding prices of steel mills also increased, which played a certain supporting role in the recovery of the electrolytic manganese market. However, due to market demand not meeting ideal expectations, the market heat gradually decreased, and the bidding prices of steel mills once again went down