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| Manganese |
South Manganese, a prominent Chinese producer of manganese products, has announced plans to launch a new manganese lump production project at its Daxin plant in Chongzuo city, Guangxi province. This initiative will produce 300,000 tonnes per year (t/yr) of manganese lump with a minimum purity of 95%. While specific launch and completion dates remain undisclosed, the project marks a strategic expansion into deep-processed manganese products.
Strategic Move to Diversify and Strengthen Market Position
The Daxin plant project reflects South Manganese’s goal to broaden its product portfolio. According to chairperson Zhan Haiqing, the expansion into manganese lump production will help the company diversify its offerings and solidify its position in the manganese market.
Manganese lump offers a distinct advantage over manganese flake, as it resists oxidation during storage, even in humid conditions like those in southern China. This quality makes it a preferred choice for industries requiring stable and high-quality manganese supplies.
South Manganese, formerly known as Citic Dameng, already operates four smelting plants in Chongzuo with a combined manganese flake production capacity of 230,000 t/yr. In 2023, the company produced 157,300 tonnes of manganese flake and 14,300 tonnes of manganese briquette, underscoring its role as a key player in the global manganese market.
Growing Demand for High-Quality Manganese
The steel and battery industries, primary drivers of manganese demand, continue to experience significant growth. Rising prices for manganese alloys have led to increased offers for manganese flake, with 99.7% grade manganese flake assessed at 12,300-12,500 yuan/tonne ($1,670-$1,717/tonne) as of December 16, 2024.
South Manganese’s new project aligns with industry trends emphasizing high-quality manganese products. The manganese industry alliance meeting in December 2024 is anticipated to provide insights into future price trends and the impact of new production initiatives like the Daxin project.
Enhancing Market Position Domestically and Internationally
As one of China’s leading manganese producers, South Manganese’s foray into manganese lump production strengthens its position in both domestic and international markets. The move also underscores the company’s commitment to supporting the steel and battery sectors, which rely heavily on consistent supplies of high-quality manganese.
This strategic diversification into deep-processed products is expected to meet the evolving demands of these industries while reinforcing South Manganese’s role as a critical supplier in the global manganese market.
