SHANGHAI, Aug. 10 (SMM ) -- China's domestic manganese ore is mainly distributed in Hunyuan region of Hunan province, Xiushan county of Chongqing, Songtao county of Guizhou province and Jingxi Daxi county and Daxin county in Guangxi province.
According to SMM sources, crackdown triggered by mine disaster in Huayuan county of Hunan province is still on the way, and it still takes 1-2 month to complete the crackdown given the seriousness of this disaster. It is reported that manganese ore supply in Xiangxi region of Hunan province is mostly from Yuanyuan region, so inventories in neighboring counties of Xiagxi region were only 10-15 days of consumption. In this context, EMM producers in Xiangxi regions will be forced to halt production from manganese ore supply cut within one week.
According to SMM sources, manganese ore supply was not tight in Xiushan county of Chongqing, but supply was not smooth due to transportation inconvenient. It is reported that local residents and manganese ore transportation teams had some conflicts, adding difficulties for transportation. In this context, manganese ore supply becomes tighter to certain extent than before.
Crackdown at EMM producers in Jingxi region of Guangxi province has begun early this year. Low-graded manganese ore can not fully meet EMM producers' demand in Guangxi province, let alone transporting out to other provinces.
Ore mine operation was normal in Songtao county of Guihzou province, limited manganese ore can be shipped out of Guizhou province as operating rates at local EMM producers in were relatively high.
SMM believes that tight supply of manganese ore will not likely to improve in the recent one or two months and low operating rates at EMM producers and tight supply of EMM in spot market will continue.
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