This is explained by a decrease in demand and the high cost of rare-earth metal.
According to Shanghai-based news source SMM, China produced 41900 tons of electrolytic manganese in September, down 20.83% from a month earlier and down 60.19% year-over-year in total.
At the same time, the metal forging from January to September amounted to 557.3 thousand tons, which was also lower by 35.03% year on year.
Experts attribute this situation to the overall low demand for the metal and high prices of manganese in the world. It is also affected by demand problems in the stainless steel sector because manganese consumption is based on special steels and alloys. In addition, some major manganese producers paused forging for repair and maintenance work due to "stretching" between suppliers and buyers.
Experts do not expect the market to improve in October, expecting that lower supply of electrolytic manganese will restore its overall balance in the market.
However, there are some manganese producers who are going to resume operations waiting for low prices for raw materials.
China expects to produce 43,600 tons of the rare metal in October.