[SMM Analysis] High-Purity Manganese Sulphate Production Slightly Decreased in November as Peak Season Effect Gradually Faded

In November 2025, domestic high-purity manganese sulphate production dropped back slightly MoM, primarily due to the dual constraints of weakening seasonal demand and increasing cost-side pressure.

Raw material cost pressure intensified further compared to October: the price of the primary raw material, sulphuric acid, continued to climb, driven by factors such as rising sulphur prices and plant maintenance. The average price of 98% sulphuric acid in the east China market reached 967 yuan/mt in November, with an increase of over 28.7% within the month. Coupled with significantly higher manganese residue treatment costs due to stricter environmental protection policies, cost pass-through pressure became more pronounced. On the supply side, most enterprises shifted their strategy towards "cautious production control": while continuing the "produce based on sales" model and maintaining low inventory levels, they reduced operating rates slightly compared to October in response to shrinking spot cargo demand, creating a situation of "costs supporting prices, while production stabilizes prices." The demand side showed signs of contraction: both the stockpiling demand that supported production growth in October and the stockpiling demand driven by cobalt prices weakened. The market was dominated by long-term contract execution, and the industry's focus shifted towards negotiating long-term contracts for 2026. The combination of these factors led to a slight MoM decline in production.

Looking ahead to December 2025, as the end-use market enters the off-season and stockpiling demand contracts further, combined with persistent cost pressures, high-purity manganese sulphate production is expected to experience another slight decline.