Chinese manganese producer Yunnan Jiangnan has recently halted its production of 90-100 tons of manganese flakes per day following an environmental inspection. Located in Wenshan city, Yunnan province, this smelter boasts an annual production capacity of 50,000 tons of manganese flakes. According to company sources, it is unclear when production will resume.
This production halt is expected to impact not only Yunnan Jiangnan but also other manganese smelters across China. The manganese market in China is already facing tight supply conditions, which has led to a significant increase in manganese ore prices in recent weeks.
Compounding the situation, Australia’s South32 GEMCO mine has also suspended operations due to cyclone damage. This has resulted in reduced manganese ore stocks at ports and smelters, fueling market participants’ expectations for continued price increases.
Yunnan Jiangnan’s production halt underscores the influence of China’s strengthened environmental regulations, which are likely to have similar impacts on other industries.
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