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China’s Output of High-Purity Manganese Sulphate Declined, Demand Remains Subdued

iconJan 6, 2023 13:45
Source:SMM
China’s high-purity manganese sulphate output was 26,400 mt in December 2022, a month-on-month decline of 11.41%.

SHANGHAI, Jan 6 (SMM) - China’s high-purity manganese sulphate output was 26,400 mt in December 2022, a month-on-month decline of 11.41%. According to SMM's survey, delivery-taking under long-term contracts at mainstream manganese salt factories slid from November as demand from new energy industry remained subdued. Most battery factories and ternary cathode companies reduced production and destocked, weakening demand for precursor noticeably.

The output of 5-series and 6-series precursors has declined most significantly, and this suppressed demand for manganese sulphate more significantly. In this scenario, most manganese sulphate plants kept their productivity low to prevent prices from falling as a result of stock accumulation. Manganese sulphate output at precursor plants integrated with manganese sulphate capacity also shrank. This resulted in a sharp decline in the output of high-purity manganese sulphate in December.

In January 2023, the demand for high-purity manganese sulphate will remain poor. According to SMM, the production schedule of precursors will continue to fall due to Chinese New Year holidays. Therefore, manganese salt plants have begun to shut down for maintenance since January, and the duration varies. Manganese salt plants are expected to resume production from maintenance in early February. And the output is estimated to be 14,200 mt in January.

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