South Manganese to Launch Manganese Lump Production at Daxin Plant in Guangxi

South Manganese

South Manganese, a leading Chinese producer of manganese products, has announced plans to construct a new manganese lump project at its Daxin plant in Chongzuo city, located in Guangxi province, southern China. The facility is set to produce 300,000 tonnes per year (t/yr) of manganese lump with a minimum purity of 95%. However, specific details regarding the launch and completion dates of the project were not disclosed.

South Manganese Expands Production into Deep-Processed Products

The new project represents a strategic move by South Manganese to expand its product range, specifically into deep-processed manganese products. According to the company’s chairperson Zhan Haiqing, the move will help the firm diversify its product offerings and strengthen its position in the manganese market. Manganese lump is a preferred product due to its ability to withstand prolonged storage without oxidizing, even in regions with high moisture levels, such as southern China. This advantage sets it apart from manganese flake, which can be more vulnerable to oxidation during storage.

South Manganese, formerly known as Citic Dameng, already operates four smelting plants in Chongzuo, with a combined manganese flake production capacity of 230,000 t/yr. In 2023, the company produced 157,300 tonnes of manganese flake and 14,300 tonnes of manganese briquette, showcasing its established role in the global manganese market.

Manganese Lump Production: A Growing Demand for High-Quality Manganese

Manganese is a critical material in the production of steel and batteries, which are key sectors driving demand for the metal. The recent price increases for manganese alloys have led producers to raise their offers for manganese flake, with prices for 99.7% grade manganese flake assessed between 12,300-12,500 yuan/tonne ($1,670-$1,717/tonne) as of December 16, 2024. This increase follows a rise in the prices of manganese alloys, highlighting the ongoing upward trend in manganese prices.

South Manganese's new project aligns with the broader industry movement towards higher-quality and more diversified manganese products. The manganese industry alliance meeting held in December 2024 is expected to provide further direction on price trends, with market participants keen to understand future price dynamics and the impact of new production initiatives like South Manganese’s Daxin project.

A Key Player in China's Manganese Sector

As one of China’s foremost manganese producers, South Manganese’s expansion into the manganese lump market will likely reinforce its market position both domestically and internationally. The company’s diversification into deep-processed products is an important step to meeting the evolving needs of the steel and battery industries, sectors that depend on high-quality, stable supplies of manganese.

China’s Jingxi Daxinan Resumes Manganese Flake Production Post Lunar New Year

Manganese Flake

Equipment Maintenance Over, Firm Restarts Output of 30-40 t/d Flake Production

China's Jingxi Daxinan, a major producer of manganese flake, has resumed its production of 30-40 tonnes per day (t/d) this week, following a scheduled equipment maintenance during the lunar new year holiday. This marks the firm's return to full operations after halting production in late January, just before the holiday.

Recovery of Manganese Flake Production and Rising Prices

Jingxi Daxinan’s smelter, located in Jingxi city in south China's Guangxi province, has a capacity to produce 20,000 tonnes per year. The production stoppage, part of a broader industry trend, was primarily due to routine maintenance and production losses faced by some smaller producers. Many smaller manganese producers without in-house mining and power generation facilities halted production to address similar challenges.

Post-holiday, manganese flake prices have started to show signs of recovery, driven by the rising prices of substitutes in the ferro-alloy market. This upward trend is supported by higher prices of imported manganese ore, which have pushed up the costs of ferro-alloy substitutes, leading producers to raise prices.

Domestic Price Increase and Market Outlook

On February 7, 2025, domestic prices for 99.7% grade manganese flake were assessed at 12,500-12,700 yuan per tonne ($1,715-$1,742/tonne) ex-works, reflecting a modest increase of Yn100 per tonne compared to February 6. This increase aligns with the broader trend of rising costs for manganese ore substitutes, which have been influenced by the higher costs of imported manganese ore.

With production now resuming, the market anticipates further shifts in supply and price dynamics. As more producers resume output, manganese flake production is expected to stabilize, supporting the growing demand from industries that rely on manganese for ferro-alloy production.

EU Manganese Flake Prices Surge Amid Ningxia Tianyuan Production Cuts

Ningxia Tianyuan

European manganese flake prices soared last week, driven by supply concerns following Chinese producer Ningxia Tianyuan's announcement of a production plant suspension. The situation was further compounded by a decision from China's manganese industry alliance to implement production cuts.

Early last week, Ningxia Tianyuan declared its plan to halt operations at a plant with a capacity of 100,000 tonnes per year. The company has yet to specify when this suspension, intended for equipment upgrades, will commence.

In response, prices within China surged immediately. As of June 20, the ex-works price for 99.7% minimum manganese flake rose to 13,700-13,900 yuan per tonne, marking a 300 yuan increase since June 17.

Export prices from China also saw a rise. The supply concerns, exacerbated by high freight costs, have further pressured European prices upward. By the end of last week, freight rates had escalated to $220-230 per tonne, up from $140 a few weeks ago and significantly higher than the $70 per tonne rate earlier this year, according to traders.

This current pricing dynamic is likely to deplete manganese flake stocks within Europe, as many traders are reluctant to purchase at current elevated prices, doubting their ability to sell at a profit by the time shipments arrive in October. Shipping times have also reportedly lengthened, now ranging from 60 to 75 days.

One market participant expressed hesitation in offering material, preferring to ensure he can meet the demands of his existing customers.

European market players are wary of committing to long-term purchases at these heightened prices, opting to sell existing stocks without acquiring new shipments from China.

Consequently, manganese flake inventories in Europe are expected to diminish soon, potentially exerting additional upward pressure on prices.

Simultaneously, production in China is anticipated to decline. Several market participants have reported planned production cuts following a recent meeting of the manganese industry alliance.

The manganese industry alliance, which includes Ningxia Tianyuan, South Manganese, Wuling Manganese, and seven other producers, agreed last weekend on near-term production guidelines. These members account for 80-90% of China's total production capacity, producing between 130,000 and 150,000 tonnes per month.

However, it remains uncertain whether the alliance will fully implement the proposed production reductions.

Meanwhile, subdued demand within Europe may also act as a counterbalance to price increases. The high European prices are primarily a result of supply-side factors, with demand from Europe's steel industry remaining unchanged. It remains unclear whether there is sufficient buyer interest within the European steel industry to sustain prices at their current levels.

Hubei Letong Halts Manganese Flake Production Due to Losses

Hubei Letong, a Chinese manganese flake producer, suspended its output last week amid operating losses and equipment maintenance issues, market sources confirmed. The company, based in Changyang county, Hubei province, has yet to announce when production will resume. Hubei Letong was producing 40-50 tonnes per day prior to the halt, with a total annual capacity of 36,000 tonnes. Compounding the situation, manganese ore supplies have been tight due to local environmental inspections.

Manganese flake prices have rebounded slightly in the past two weeks, driven by producers raising offers to offset operating losses. However, further price increases are not expected, as the market for manganese alloys has remained sluggish. The stainless steel sector, a major consumer of manganese flake, has not recovered as anticipated, even after the typical summer slowdown ended.

Producers with in-house mines faced significant losses when prices fell below 12,000 yuan per tonne. On September 18, domestic prices for 99.7% grade manganese flake were assessed at 12,000-12,200 yuan per tonne, reflecting a 300-yuan increase from earlier this month. This price recovery comes after a downward trend throughout July and August, following a one-year high of 13,700-13,900 yuan per tonne in late June.

Jingxi Daxinan Halts Manganese Flake Production Amid Market Pressures

Manganese Flake

Maintenance Shutdown Precedes Lunar New Year Holiday

Jingxi Daxinan, a Chinese manganese flake producer, will halt its daily output of 30-40 tonnes next week. This stoppage is for equipment maintenance prior to the Lunar New Year holiday. The company plans to restart production mid-February. Located in Jingxi city, Guangxi province, the smelter boasts a 20,000 tonne annual capacity.

Market Stability and Producer Challenges

Manganese flake prices have remained stable since December 12, 2024. This follows an earlier price surge. Stainless steelmakers resist higher offers. They cite rising manganese alloy prices, a substitute material. Some smaller producers struggle with profitability. They lack in-house mines or power plants. Low demand from stainless steel sectors hinders price increases. Several producers are halting operations for maintenance. This happens before the Lunar New Year holiday. Hubei Letong and Tongren Hecheng also stopped production. Domestic 99.7pc grade flake prices are at 12,300-12,500 yuan/tonne. Prices should remain steady. Producers will hold firm. Rising sulphuric acid and ferro-alloy prices support flake prices. This offsets low stainless steel demand.

Hubei Letong Resumes Manganese Flake Production Amid Price Surge

Chinese manganese flake

In a move reflecting optimism in the metals market, Hubei Letong, a prominent Chinese manganese flake producer, has resumed its production of 30-40 tons per day after a nearly month-long hiatus. The suspension, which began in mid-September, was primarily due to equipment maintenance and ongoing operating losses that necessitated the pause in operations.

Market Recovery Fuels Production Resumption

The resumption of output coincides with a notable increase in manganese flake prices, driven by rising demand from the stainless steel sector. As of October 14, domestic prices for 99.7% grade manganese flake were assessed between 12,300 and 12,500 yuan per ton (approximately $1,737 to $1,765), marking a rise of 100 yuan per ton from October 11. This increase is a significant recovery from the earlier price range of 12,000 to 12,200 yuan per ton reported on September 25.

The market sentiment has strengthened in the latter part of September, particularly following China’s announcement of new stimulus measures aimed at bolstering the struggling real estate sector ahead of the October national holiday. Industry observers remain cautious, however, as they anticipate whether these policies will sufficiently stimulate demand within the steel sector.

Hunan Shunke Launches Manganese Flake Plant in China’s Hunan Province

Chinese producer Hunan Shunke New Material has commenced operations at its new manganese flake plant, initiating production with the first two lines. According to local government reports, these initial production lines are expected to yield a combined output of 2,200 tons per month. The company plans to activate the remaining three production lines by the end of this year, with an ambitious target to produce 25,000 tons of manganese flake in 2024.

Located in Huayuan county in central China’s Hunan province, Hunan Shunke has collaborated with Dongfang Mining, another flake producer in the region, investing 30 million yuan ($4.1 million) in this project. The expansion into manganese tetroxide production, which is crucial for the lithium-ion battery industry, is also part of Shunke's strategic growth plan.

The rapid growth of the electric vehicle (EV) power battery sector has driven many Chinese companies to increase production of manganese-based battery materials. In 2023, China’s lithium manganate production rose to 122,000 tons, marking a 40% increase from the previous year, according to the China Non-Ferrous Metals Industry Association.

In related developments, Hubei Boyang New Materials announced in July plans to build a manganese-based cathode active materials (CAM) plant in the Changyang economic development zone of Yichang city, Hubei province. Additionally, Wuxi Jewel Power and Materials revealed plans in June to construct lithium manganate and lithium manganese iron phosphate plants in Guangyuan, Sichuan province.

China’s Dongfang Mining Resumes Manganese Flake Production After Eight-Month Hiatus

Major Chinese manganese producer Hunan Dongfang Mining has resumed its manganese flake output, producing 100-110 tons per day in Hunan province since early August, following an eight-month suspension.

The production halt began last December due to financial losses driven by high production costs. The restart was delayed by local environmental inspections.

Situated in Huayuan county, Hunan province, the company has an annual flake production capacity of 60,000 tons. Other producers, including Yunnan Jiangnan, also reduced production at the beginning of 2024 due to similar environmental checks.

Manganese prices have remained stable since falling from a peak of Yn13,700-13,900 per ton on June 25, influenced by a seasonal drop in demand from the stainless steel sector and lower prices for manganese alloys, a substitute material.

Spot flake prices are expected to remain steady in the near term, as the market may find support from a new round of stockpiling purchases by the manganese industry alliance, despite reduced demand from the stainless steel sector.

China's Yunnan Jiangnan Halts Manganese Production Amid Environmental Inspections

Chinese manganese producer Yunnan Jiangnan has suspended its daily output of 90-100 tons of manganese flake in response to recent environmental inspections. According to a company source, the timeline for resuming production remains uncertain. The smelter, situated in Wenshan city in southwest China's Yunnan province, boasts an annual production capacity of 50,000 tons of manganese flake.

The suspension could impact not only Yunnan Jiangnan but also other smelters across China. The country's manganese market is experiencing tight supply conditions, contributing to the recent surge in manganese ore prices over the past few weeks.

Compounding the situation, South32's GEMCO mine in Australia has also halted production due to cyclone damage, further destabilizing the manganese market. This disruption has led to decreased manganese ore inventories at ports and smelters, fueling expectations of continued price increases among market participants.

The production halt at Yunnan Jiangnan is closely tied to the Chinese government's intensified environmental regulations, which are expected to similarly affect other industries.

Hubei Boyang launches manganese-based battery CAM plant to scale China’s next-wave cathodes

Hubei Boyang

China’s manganese-based battery CAM build-out gained momentum as Hubei Boyang started its first-phase plant. The project adds manganese-based battery CAM capacity and manganese tetroxide at scale. As a result, manganese-based battery CAM supply will deepen near upstream ore in Hubei.

First-phase start-up and three-stage growth path

Hubei Boyang commissioned a plant with 20,000 t/yr of manganese-based CAM. It also started 30,000 t/yr of manganese tetroxide. The site sits in Changyang, Yichang, central Hubei. However, the plan is larger than this first step. The full project targets 280,000 t/yr across three phases.

Changyang county hosts abundant manganese ore reserves for feedstock. Therefore, the location reduces logistics risk and costs. Hubei Zhongmeng operates five lines totaling 50,000 t/yr of manganese flake. That nearby supply strengthens the project’s raw material security.

China’s LMFP and Mn-rich cathodes expand rapidly

China’s power battery growth is catalyzing manganese-based battery CAM investments. Producers are scaling LMFP and related Mn chemistries. Meanwhile, Hunan Yuneng is building an LMFP line. Shanxanxi Tewashi began a 100,000 t/yr plant in May. Ningbo Ronbay plans LMFP and sodium-ion CAM in Hubei. Baiyin Shidai Ruixiang launched 20,000 t/yr of battery-grade LMFP in Gansu.

Manganese-rich cathodes aim to balance cost, safety, and energy. As a result, they target EVs and storage systems. Hubei Boyang’s start-up signals tighter integration from ore to cathode. It should broaden customer options beyond LFP and ternary NCM.

The Metalnomist Commentary

China’s Mn-based push lowers cathode cost while reducing nickel and cobalt exposure. Watch phase-by-phase execution and LMFP adoption rates. Regional feedstock proximity could anchor margins during price swings.

Guangxi Daxin Jinge Temporarily Halts Manganese Production for Maintenance

Guangxi Jinge

Guangxi Daxin Jinge, a Chinese manganese producer, has paused its flake manganese production, which amounts to 20 tons per day, to conduct necessary equipment maintenance at the beginning of this month. The company, situated in Daxin county, Chongzuo city, in China’s Guangxi province, operates a production line with an annual capacity of 10,000 tons. However, the specific duration of this halt and the resumption date remain unspecified.

Economic Challenges and Market Impact

The temporary suspension stems from financial difficulties the company faces due to the current market prices of manganese. Despite a slight price increase on December 4, the overall market sentiment remains subdued, particularly influenced by reduced demand from the stainless steel industry. Smaller manganese producers, especially those without their own power or mining resources, experience significant losses when prices drop below 12,000 yuan per ton ($1,651 per ton) ex-works.

On December 4, the price for 99.7% grade manganese flake was recorded between 12,000 to 12,200 yuan per ton, marking a small increase from previous rates. This adjustment reflects attempts by producers to align with the rising costs of substitute materials like manganese alloys, despite the persistent low demand from the stainless steel sector.