SMM Analysis Of China Battery-Grade Manganese Sulphate Production In May And Forecast For June

In May, China's production of high-purity manganese sulphate was approximately 16,300 mt, down 4.11% MoM, primarily as some producers had plans of production halts for maintenance. In addition, affected by unstable manganese ore prices on the raw material side, enterprises were cautious in shipments, resulting in a decline in overall scheduled production. In May, as issues at the South32 mine had not been resolved, port inventories were continuously consumed. Miners were still reluctant to sell at low prices, causing manganese ore prices to keep rising, pushing up the costs of high-purity manganese sulphate. Manganese salt plants in Guizhou had no plans to resume production, and others experienced short-term production halts for maintenance due to equipment upgrades and other factors. With the limited profits in the high-purity manganese sulphate market, producers mostly maintained production based on sales and were unwilling to build up inventory, leading to a reduction in overall market supply.

Entering June, since the supply gap of manganese ore is difficult to fill in the short term, the price of imported Gabonese manganese ore will continue to rise. As a result, high-purity manganese sulphate producers will offer higher. Some will resume normal production, leading to an increase in overall scheduled production. Demand side, most ternary cathode precursor producers maintained purchases as needed, with stable procurement volumes. Therefore, the production of high-purity manganese sulphate in June is expected to increase, reaching approximately 19,200 mt, up 17.79% MoM.