Production cut by 200,000 tons/year, supply cuts continue to boost manganese prices
:  : Nov 01,2021

Later this week, some trading companies began to sell materials profit-taking, which prevented further price increases from higher levels in the past two weeks.

Spot supply is still tight, because most producers are operating at low capacity due to power supply constraints. The main producer, Chongqing Wuling Manganese Industry, suspended production of 200 tons/day on October 25 and is unlikely to resume production before the end of November. Songtao Sanhe Manganese Industry suspended 160 tons/day production last week, although it may resume production sooner.

Supply is expected to be further tight, as all producers in Xiushan County, Chongqing City in southwestern China will be permanently closed by the end of November. Producers located in Huayuan County, Hunan Province, Central China, and Songtao County, Guizhou Province, Southwest China, with a production capacity of less than 30,000 tons/year may close before the end of December. The total production capacity to be closed in these areas is about 200,000 tons/year, accounting for 10% of the country's total production capacity.

Major producers that are members of the China Manganese Industry Alliance may conduct more shutdowns in order to fulfill their commitment to suspend production for a total of 90 days in 2021.

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