Output cuts by several Chinese stainless steel producers are expected by market participants to pressure the spot manganese flake market in the short term.
Manganese metal is mostly used in production for 200 series stainless steel. Key producers have begun to cut 200 series stainless steel this month in response to falling steel prices.
Baosteel Desheng this week announced that it will reduce its output of 200 series stainless steel by 60pc, while other key producers including Tsingshan, Beigang New Materials have also unveiled reduction plans. The country's output for 200 series stainless steel is forecast to fall by 450,000t in the next three months, according to market participants.
But major manganese producers in China had also planned to reduce output before the output cuts at steel mills were unveiled. Flake producers held an industry alliance meeting during 4-5 December. The country's largest producer Ningxia Tianyuan after the meeting said it will [suspend production of 1,500-1,600 t/d][https://metals.argusmedia.com/newsandanalysis/article/2280350] for two months of equipment maintenance until 15 March. The meeting also set out a plan for 195 days of output suspensions over six months by China's key manganese producers next year. Market participants told Argus that the producers have been told to send their detailed production plans to the alliance by the end of this month.
China's manganese production is forecast to fall by half to 500,000-600,000t in 2022,...
Read Full Story: https://www.argusmedia.com/en/news/2283376-stainless-steel-cuts-pressure-chinas-manganese-outlook
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