China’s manganese production is forecast to fall by half
December 28, 2021
Output cuts by several Chinese stainless steel producers are expected by market participants to pressure the spot manganese flake market in the short term. Manganese metal is mostly used in production for 200 series stainless steel. Key producers have begun to cut 200 series stainless steel this month in response to falling steel prices.
China’s manganese production is forecast to fall by half to 500,000-600,000t in 2022, while output for this year is estimated at around 750,000-900,000t, according to market participants.
Market participants are divided on their outlooks, with some expecting flake prices to drop in the short term with a number of producers likely to cut prices to attract orders to generate cash for year-end accounting purposes along with the steel production cuts. Others expect the market to hold at the current level as the reduction plans by key producers will offset lower production for stainless steel. This may support prices in the medium term.
(Source: Argus Media)
