Cost and Supply-Demand Resonate, Tightness in Manganese Sulfate Market Intensifies Ahead of Spring Festival

Published: Jan 29, 2026 19:39

Source: SMM

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In late January 2026, China’s domestic manganese sulfate market has presented a three-pronged pattern of soaring costs, tight supply and strong demand. Coupled with the concentrated restocking demand from downstream industries ahead of the Spring Festival, spot resources remain in acute shortage and order schedules are tight. The industry widely expects a new round of sharp price hikes in the near future.

In late January 2026, China’s domestic manganese sulfate market has presented a three-pronged pattern of soaring costs, tight supply and strong demand. Coupled with the concentrated restocking demand from downstream industries ahead of the Spring Festival, spot resources remain in acute shortage and order schedules are tight. The industry widely expects a new round of sharp price hikes in the near future.

Multiple Cost Pressures Pile Up, Driving Up Production Costs Substantially

Producers of manganese sulfate are currently under comprehensive cost pressure, squeezed by high prices of upstream raw materials and rising environmental protection expenses. Profit margins continue to narrow, and manufacturers hold a strong stance on price support.

Sulfuric acid, as a core raw material for manganese sulfate production, has seen continuous and sharp price hikes recently, becoming the primary driver of rising production costs. As a globally priced commodity, sulfur was affected by geopolitical tensions in the Middle East and excessive consumption by nickel smelting projects in Indonesia. Its price surpassed RMB 4,300 per ton in January 2026, hitting a two-year high. This directly led to cost inversions for sulfur-based sulfuric acid producers, forcing some production units to suspend operation for maintenance and cut output, further exacerbating the tight supply in the sulfuric acid market and translating into a substantial cost increase for manganese sulfate production.

High manganese ore prices have added further pressure to the cost side. China’s domestic manganese ore market is currently characterized by low inventory and structural divergence, with cargo rights concentrated among a small number of traders. The tight market has supported continuous rises in offshore quotations, with Gabonese manganese lumpy ore exceeding 4.9 USD per ton-degree. Domestic spot prices have risen in tandem, directly pushing up the raw material procurement costs for manganese sulfate.

Against the backdrop of stricter environmental policies, the rising cost of manganese residue treatment has emerged as a new pressure point. With strengthened environmental supervision across regions, manganese residue generated during manganese sulfate production must undergo compliant treatment before discharge. Upgraded treatment processes and higher disposal fees have further lifted comprehensive production costs. Some small and medium-sized enterprises have been forced to reduce operating rates due to unaffordable cost burdens, indirectly reducing market supply.

Persistently Tight Supply-Demand Balance Exacerbated by Pre-Holiday Restocking

As the Spring Festival approaches, the significant release of concentrated restocking demand from downstream industries has become the core driver pulling the market upward. The growing share of high-nickel ternary material routes in the new energy vehicle industry chain has raised per-unit consumption. To prepare for post-holiday production, downstream buyers have stepped up procurement recently, further intensifying the market’s supply-demand imbalance.

The market is now facing a situation of scarce orders and limited spot availability. Some downstream enterprises have to accept price increases to secure supply, pushing market prices upward steadily.

Market Outlook: Strong Expectations of Substantial Price Hikes Supported by Multiple Positive Factors

On the whole, the domestic manganese sulfate market is currently at a stage where strengthened cost support and booming downstream demand resonate. Positive factors are expected to persist in the short term, leading to strong market expectations of substantial price increases.

Battery-grade manganese sulfate prices are projected to break through the RMB 7,000 per ton threshold in the near term, with greater upward potential in the follow-up market. Downstream enterprises are advised to plan procurement rationally and lock in supplies in advance to hedge against price fluctuation risks. Upstream producers should closely monitor changes in raw material supply and environmental policies, and optimize production arrangements to seize market opportunities.

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