SHANGHAI, Dec 8 (SMM) – The tenth meeting of China National Mn Industry Technology Committee was held in Huayuan County, Hunan, on December 3. According to SMM survey, China’s production of EMM was significantly affected by the environmental protection inspections and and power rationing, and the overall output fell on the month. EMM prices stood high, but gradually fell and stabilised in early December amid lower purchases.
The total output in the three major manganese production regions (Hunan, Guihzou, Chongqing) declined significantly. Chongqing and Hunan removed part of the EMM capacities, and the total production capacity will be lower than 70,000 mt. The other plants have no plan for production expansion in 2022. Therefore, the total output of EMM is expected to grow slower next year.
Although the profits of EMM producers surged this year, most market participants used the profits to make up for the capital losses in previous years amid vicious competition. Their pressure of loan repayment has been eased.
The overall domestic apparent consumption has declined slightly compared with last year. Although the total export volume has increased this year, the actual output of EMM has decreased significantly. The profit margin has increased exponentially since Q2 this year.