A mixture of fears over supply disruptions amid the Wuhan coronavirus outbreak and low stocks in Rotterdam are giving European traders enough leverage to increase their offers substantially, which has already an effect on prices.
Fastmarkets' manganese 99.7% electrolytic manganese flake, in-whs Rotterdam price assessment rose to $1,725-1,800 per tonne on January 29, up by 3.7% from $1,680- 1,720 per tonne on January 24.
By the time of publication, the highest offer heard in Rotterdam was at $1,860 per tonne. This offer was not yet accepted when the prices was assessed, however, but most market participants expect to reach that level due to the fallout from the virus keeping prices firm for the foreseeable future.
"Today is impossible to buy below $1,800 per tonne in Rotterdam. I had several inquiries this week and I'm rising my offers finding no resistance at all," a European trader said. "I could see the metal surging above $2,000 per tonne in following days," he added.
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