Chinese manganese producer Yunnan Jiangnan has paused its daily production of 90-100 tons of manganese flake due to recent environmental inspections. The smelter, located in Wenshan city in Yunnan province, boasts an annual capacity of 50,000 tons of manganese flake. According to a company source, it is unclear when production will resume.
This suspension is likely to impact not only Yunnan Jiangnan but also other manganese smelters across China. The country's manganese market is already experiencing tight supply conditions, which have contributed to a significant rise in manganese ore prices in recent weeks.
Exacerbating the situation, South32's GEMCO mine in Australia has also halted operations due to cyclone damage. This has led to decreased manganese ore inventories at ports and smelters, fueling expectations of continued price increases among market participants.
The halt in production at Yunnan Jiangnan highlights the influence of the Chinese government's intensified environmental regulations, which are anticipated to have similar effects on other industries as well.
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RAW MATERIAL
