Hubei Letong Resumes Manganese Flake Production Amid Price Surge

Production Resumption Follows Market Recovery
Hubei Letong, one of China’s key manganese flake producers, has resumed production at its facility, increasing output to 30-40 tons per day after a nearly month-long suspension. The downtime, which began in mid-September, was primarily due to equipment maintenance and the financial strain caused by ongoing operating losses. However, the recent recovery in manganese prices has prompted the company to restart production.

Manganese Flake Prices Rise Amid Strong Demand
The resumption of Hubei Letong’s output comes as manganese flake prices have seen a notable uptick, driven largely by rising demand in the stainless steel sector. As of October 14, domestic prices for 99.7% grade manganese flake were assessed between 12,300 and 12,500 yuan per ton (roughly $1,737 to $1,765). This marks a rise of 100 yuan per ton compared to the price range of 12,000 to 12,200 yuan per ton seen in late September, signaling a positive shift in the market.

Stimulus Measures and Market Sentiment
The price increase is partly attributed to a broader market recovery, particularly following China’s introduction of new stimulus measures to support its struggling real estate sector. These policies, which were announced in the lead-up to the October national holiday, have bolstered confidence in the market. However, experts remain cautious about whether these measures will effectively stimulate sufficient demand in the steel industry, which is the primary driver of manganese consumption.