Restart Follows Maintenance and Price Surge
Hubei Letong, one of China’s prominent manganese flake producers, resumed operations after nearly a month of downtime. The company restarted manganese production, ramping up output to 30-40 tons per day. This followed a period of equipment maintenance and financial losses that began in mid-September. The restart comes amid a recovery in manganese prices, driven by strong demand in the steel industry.
Manganese Prices Rise, Boosted by Stainless Steel Demand
Manganese flake prices surged in recent weeks, with the 99.7% grade flake now priced between 12,300 to 12,500 yuan per ton ($1,737-$1,765), up from 12,000-12,200 yuan per ton in late September. The price rise reflects increased demand from the stainless steel sector, a primary driver for manganese production and consumption.
The price hike also aligns with broader market improvements following China’s stimulus measures. These policies, aimed at supporting the struggling real estate sector, were announced before the October national holiday. The stimulus boosted investor confidence, but experts remain cautious about its long-term effects on steel sector demand and manganese production growth.
Uncertainty Remains Despite Stimulus Measures
Though the stimulus has revived market sentiment, questions linger about its ability to drive substantial growth in the steel industry. Manganese consumption heavily depends on steel production, which remains sluggish despite positive signs. Experts warn that the effectiveness of government intervention might take time to materialize, especially in manganese-dependent industries. Therefore, manganese production must adapt to these uncertainties.
Leave a Reply
You must be logged in to post a comment.