SHANGHAI, Nov 20 (SMM) – Several manganese producers in Hunan province have suspended operation from the end of October, three in Huayuan, one in Huaihua and one in Anhua, SMM learned.
There were eight manganese producers in operation in Hunan before this round of shutdowns. SMM believes that the closures were attributed to environmental probes and losses.
Manganese ore miners in Huayuan have suspended since May after a safety accident and pollution issues. Local manganese producers have to purchase beyond the county and this substantially grows their costs. As of Monday November 19, total costs for manganese producers in Huayuan stood above 14,000 yuan/mt, while manganese prices fell below 13,000 yuan/mt, SMM assessments showed.
The central environmental unit sent five inspection teams to 10 provinces earlier this month. Manganese ore miners and manganese producers in Huayuan all underwent inspections.
SMM learned that high prices of ore shut the biggest manganese producer in Huayuan for maintenance over the weekend, despite its high environmental standards.