"Electrolytic Manganese Faces Price Constraints Amid Loose Supply, Weak Demand, and Raw Material Substitution"

Electrolytic manganese entered its traditional off-season in May and June 2026, with the market witnessing a loose supply-demand surplus and narrow price fluctuation ranges. Hit by sluggish downstream purchases, prices once corrected notably. Industrial alliances swiftly rolled out coordinated production cuts and price support measures to ease bearish sentiment, halting the spot price decline in a timely manner.

Strong cost support underpins market performance. As electrolytic manganese production is highly acid-intensive, persistently high sulfuric acid prices have substantially lifted smelters’ production costs, leaving manufacturers reluctant to offer deep discounts. On the supply side, the whole industry carried out coordinated output cuts and destocking, with production curbs mainly implemented by small and medium-sized producers. Major manufacturers maintained steady operating rates backed by stable long-term orders and stockpiles. Circulating spot volumes shrank gradually while social inventories declined moderately, delivering mild support to spot prices.

Weak demand remains the core drag on price rallies. With electrolytic manganese lacking cost competitiveness, stainless steel mills have widely substituted it with ferrosilicon to control production expenses, continuously diverting purchasing demand. Only 300-series stainless steel, special steel and downstream manganese salt producers maintain rigid demand, while purchasing activity from other sectors stays muted. Sparse spot inquiries result in thin trading and a typical "prices available but few transactions" scenario.

Looking ahead to the second half of the year, the third quarter will remain in the late off-season with slow demand recovery. The substitution effect of ferrosilicon will persist, and the loose supply landscape is unlikely to reverse fundamentally, putting mild downward pressure on the overall price center. Although downstream demand will recover slowly as the traditional peak season arrives, ample supply will cap sharp price gains, keeping electrolytic manganese prices range-bound and weak on balance.