Guangxi Daxin Jinge Suspends Manganese Production Amid Financial Challenges

Production Halt for Maintenance
Guangxi Daxin Jinge, a leading manganese producer based in China‘s Guangxi province, has temporarily ceased its manganese flake production due to essential maintenance. This halt affects 20 tons of daily production, with the company having an annual capacity of 10,000 tons. While the company has not specified when operations will resume, the pause highlights the ongoing operational difficulties faced by manganese producers in the region.

Financial Strain Due to Low Market Prices
The suspension is driven by the financial difficulties the company is grappling with, stemming from the current subdued manganese market. Although there was a slight price uptick on December 4, manganese prices remain low, primarily due to the reduced demand from the stainless steel industry. This market condition is especially challenging for smaller producers without integrated power or mining resources. Such companies face severe losses when prices drop below 12,000 yuan per ton ($1,651 per ton).

Market Adjustments and Price Trends
On December 4, the price for 99.7% grade manganese flake was recorded at 12,000 to 12,200 yuan per ton, reflecting a minor increase from prior levels. Despite this rise, producers are still facing challenges, as demand from key sectors like stainless steel remains weak. The small price adjustment is partly an effort by manganese producers to align with the increased costs of alternative materials, such as manganese alloys, which have become more expensive due to rising costs.