Death sentence in China factors into high US Mn flake prices, sources say

A death sentence given on Tuesday January 5 to a Chinese financier whose company partly funded the world’s largest manganese metal producer contributed to a 15% increase in the United States electrolytic manganese flake price, according to market sources.

The jump returned the US price to its highest level in two years.
The price had already been rising on supply concerns out of China even before the sentencing of Lai Xiaomin, the former chairman of China Huarong Asset Management, on corruption charges.
Huarong reportedly provided a large amount of structured financing to Ningxia Tianyuan Manganese Industry, the world’s biggest flake supplier.
“The sentencing of Lai Xiaomin this week has added to supply concerns. Many traders are now taking positions,” a flake trader in the US said on Thursday January 7.

Flake prices in Europe and the US were already up...

Published

Orla O'Sullivan

January 08, 2021

05:38 GMT

New York