Mixed Stockpiling in Manganese Industry ahead of CNY

SHANGHAI, Jan 3 (SMM) - Spot trades have been mixed since China’s reopening. An SMM survey showed the stockpiling in the manganese industry before Chinese New Year holidays.

Imported manganese ore: Downstream manganese alloy producers normally restock ahead of CNY holidays. SMM survey showed that other than several manganese alloy plants that suspended production for maintenance amid severe losses, most of the other manganese alloy factories will remain in production, ensuring the demand for manganese ore in January. Meanwhile, the landslide at one manganese mine in Gabon triggered market concerns over shipments in the near term. Domestic market participants will therefore raise their quotes. The prices of manganese ore are likely to rise in the short term.

Silicon-manganese alloy market: Affected by the COVID-19 pandemic, the inventory of silicon-manganese alloy at steel mills has been at low levels. Steel mills’ interest in stockpiling has improved, and their restocking is strong ahead of CNY holidays. Steel mills have implemented bid solicitations and the bid prices by some steel mills were in line with market expectations. Transactions have picked up.

EMM: According to SMM survey, some mills are expected to halt production in January against poor downstream demand. The time when they will resume production will demand on the market. In addition, most of the downstream users used ferromanganese instead of EMM as an alliance of EMM plants have cut or suspended production in a bid to bolster prices. Pre-CNY stockpiling for EMM is relatively weak.

High- purity manganese sulphate: Demand for new energy has weakened since China’s retreat from zero-COVID policy. Most of the ternary cathode material and precursor factories curtailed output and destocked inventories. Most of the manganese salt plants have no plans to restock. Several plants that had fallen short of inventories restocked in small volumes, though.