Spot export prices of Chinese electrolytic manganese metal firmed further this week as European demand picked up ahead of China's October 1-8 National Day holidays.
S&P Global Platts 99.7% manganese metal assessment stood at $1,670-$1,700/mt FOB China Friday, up from $1,650-$1,680/mt last week.
Major Chinese producer Ningxia Tianyuan has ceased offering spot in the past month, and this has continued to support prices, several market participants said.
No trades, however, were heard concluded this week despite an increase in buying interest and queries, sources said.
A South China trader said he had received offers at mostly around $1,700/mt FOB China this week, with bids from European buyers at $1,740-$1,750/mt CIF Rotterdam basis.
"China Golden Week is coming up, so some buyers are stocking up," the trader said. "We expect to see more trades in the coming week and prices supported until the holidays."
A South Korean trader said he also saw an increase in European queries this week, but their pricing ideas stood at less than $1,700/mt CIF Rotterdam, against offers of $1,700-$1,740/mt FOB China.
A Japanese trader cited a pricing idea from a Japanese customer at around $1,600/mt FOB China, which he said was "too low, very hard to get, so there was no trade...even $1,650/mt would be too low now."
"The biggest reason for higher prices is because Ningxia Tianyuan stopped offering about a month ago," a second Japanese trader said. "Prices will fall when they come back."
Market talk is that Ningxia Tianyuan is now expected to resume spot offers after the October holidays, but the company could not be reached for immediate comment Friday.
In the near term, prices are expected to test higher or stay firm until the end of September, and likely fall back after the October holidays as demand eases, and should Tianyuan resume spot sales.
A source at Ningxia Tianyuan said earlier this month that the company was likely to offer around mid-September or later. "Macroeconomics issues and government policies are all supporting raw material prices in China, so there will be support," the source said.
