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.