China’s planned manganese flake output cuts in Q1 not causing panic yet

The manganese flake market has started the year with lower production from the main producers in China and market participants are now assessing whether the cuts will lead to a severe tightness or shipments on the water will be sufficient.

Production cuts were announced after a meeting held in late December by the Manganese Innovation Alliance, an industry group formed by more of 40 electrolytic manganese producers in China. This group was formed in October 15 to “form an industry coordination operation mechanism, improve product quality and efficiency, and promote the healthy development of the industry,” it said.
Fastmarkets has seen an official document from the alliance, which says that the main producers will suspend production during the first quarter. More than half a dozen market participants, some of them direct customers of Ningxia Tianyuan Manganese Industry Group, the country's largest producer, have also been notified about the production cuts.
The news came after Ningxia Tianyuan said in November that it planned to cut electrolytic manganese flake throughout February and March.

The production cuts will remove approximately 140,000 tonnes of electrolytic manganese flake from the market, a source with knowledge...

Published

Cristina Belda

Jessica Long

January 14, 2022

05:54 GMT

London, Shanghai