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.