Spot export trades for Chinese electrolytic manganese metal on an FOB basis remained thin on weak demand, while steady offers were under pressure on a weakening yuan after the UK voted to leave the EU, industry sources said Friday.
The 99.7% manganese export price was assessed at $1,500-$1,550/mt FOB China Friday, unchanged week on week.
"Spot supply is still tight. Prices are likely to fall further in July as demand will traditionally thin out in summer," said a south China-based trader, who heard FOB offers around $1,500/mt.
A south China-based producer said: "Market offers are steady at $1,550/mt FOB and Yuan 9,800-9,900/mt ($1,480-$1,495/mt) ex works. The demand is also generally steady, seeing no significant change. We have no spot or July stocks and only have August stocks, which we will start selling in mid-July."
Asian buyers were also hearing steady FOB offers and said the offers would fall due to the weaker Chinese yuan after the UK referendum result.
"The yuan will devalue due to Brexit and this will possibly lower Chinese fob offers," a South Korean trader said.
Another South Korean trader said: "There is nothing much in the market. Stocks are lacking. I have received an offer at $1,530/mt CIF Busan. I did not buy as I do not have any order from my customers. Some sellers are also not selling due limited available stocks."
In addition to a weak yuan, the second South Korean trader said the Korean won had also weakened, making imports more expensive.
"South Korea's current FTA with the EU cannot be applied to UK. They have to be renegotiated," this second South Korean trader said.
