China Manganese Prices Rise on Power Woes

SHANGHAI, Jan. 12 -- Prices of manganese have risen in China as producers were forced to scale back production due to power shortages in parts of the country, industry officials said on Monday.

Central provinces in China, including Henan, Hubei, Jiangxi, Sichuan and the city of Chongqing are facing power shortages, and some have already started rationing power, due to a shortage of coal.

"Production of manganese has been on and off," said Fu Li, vice president of Chongqing Trust-Glory New Metals Co., adding that in Chongqing manganese producers were ordered to suspend production to save power for residential use.

Prices of manganese, a metal used in steel and aluminium alloys, rose about 1 percent from last Friday to 15,500 yuan to 15,700 yuan ($2,271 to $2,300) a tonne in Shanghai, up 4 percent so far this year.

"Manganese supply has been very tight, and traders are hesitant to sell their stocks," said Victor Hu, an analyst at Asian Metals based in Beijing.