Industry figures at the International Ferro-alloys conference in Budapest this week will be discussing future developments in the manganese markets after a dramatic turn in the manganese flake price over the past year; Fastmarkets looks at the key reasons behind the slump.
The manganese 99.7% electrolytic manganese flake, in-whs Rotterdam price fell to $1,610-1,670 per tonne on November 8, down by 30.2% from $2,300-2,400 per tonne on November 9, 2018. At the time of last year's Fastmarkets International Ferro-alloys conference (November 11-13, 2018), the price was supported by production curtailments due to maintenance at Ningxia Tianyuan, a Chinese producer that accounts for around 40% of global manganese flake production. One year later, the price has hit a four-year low amid severe oversupply, and Chinese producers have been forced to put in place production cutbacks. The manganese flake price started its downtrend in July, exacerbated by a weaker yuan that boosted China's exports at competitive prices. The Chinese currency has fallen gradually since February 2018, reaching its lowest level in more than a decade in August when it exceeded 7 yuan to the dollar. Despite strengthening over October to a peak of 6.9869...