Marginal Demand Recovery: Manganese Sulphate Rises Steadily and Mildly [SMM Battery-Grade Manganese Sulphate Weekly Review]

This week, the domestic manganese sulphate market broke away from its previous weak consolidation, consolidating on a strong note with a slight uptick, as market performance improved steadily. The cost side provided solid support: sulphuric acid prices rose again recently, continuously pushing up overall production costs for manganese salt enterprises. Producers were extremely reluctant to sell at low prices, and spot offers were raised in tandem, laying a solid price floor for the market. The demand side achieved marginal recovery, with downstream precursor enterprises’ operating rates gradually picking up. On top of the stable base of long-term contract purchases, some end-users proactively increased spot procurement volumes, and the trading atmosphere in the market improved significantly compared to before. However, the loose supply pattern in the industry has not yet reversed, market inventory did not see effective destocking, and downstream end-users still adhered to a cautious procurement strategy of buying on demand and maintaining low inventory, with no large-scale concentrated stockpiling activities. This resulted in a lack of strong upward momentum in the short term, and the market moved at a steady upward pace, mildly on the strong side with small fluctuations and drifting higher. Looking ahead, positive factors continue to accumulate. The tight spot supply of sulphuric acid is unlikely to ease quickly in the short term, and cost support will continue to strengthen. Meanwhile, Q3 will see the gradual release of medium-nickel high-voltage precursor capacity—a process route that consumes more manganese raw material per unit and can sustainably release incremental rigid demand. The rise in costs and the demand recovery will resonate, helping manganese sulphate to climb steadily in the future. The subsequent focus will be on tracking sulphuric acid price fluctuations and the strength of downstream end-use demand recovery.