Guangxi Daxin Jinge, a key manganese producer in China, has temporarily stopped its manganese flake production. This stoppage is due to essential maintenance. The halt affects 20 tons of daily production. The company has an annual capacity of 10,000 tons. The company has not specified when operations will resume. This pause highlights ongoing operational difficulties.
Financial Difficulties Arise from Low Market Prices
The suspension is driven by financial difficulties. These difficulties stem from the current subdued manganese market. Although there was a slight price uptick on December 4, manganese prices remain low. This is primarily due to reduced demand from the stainless steel industry. Smaller producers face severe losses when prices drop below 12,000 yuan per ton ($1,651 per ton).
Market Adjustments and Price Trends Observed
On December 4, the price for 99.7% grade manganese flake was recorded at 12,000 to 12,200 yuan per ton. This reflects a minor increase from prior levels. Despite this rise, producers face challenges. Demand from key sectors remains weak. The small price adjustment is partly an effort by manganese producers. They aim to align with increased costs of alternative materials. Manganese alloys have become more expensive due to rising costs.
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