SMM

In November 2024, China's production of high-purity manganese sulphate increased slightly MoM but showed a significant YoY decline. The slight increase in November's production was mainly due to the temporary production halts in October caused by environmental protection inspections in Guangxi, which have now resumed normal operations, leading to an increase in market supply. However, some companies hold a pessimistic outlook on the future market, adopting conservative production plans and choosing to reduce production to avoid inventory surplus. Overall, market supply remains lower compared to 2023. It is expected that as December approaches year-end, the demand for ternary cathode precursors downstream may stabilize, with most transactions based on long-term orders and fewer spot cargo purchases. Consequently, China's production of high-purity manganese sulphate is expected to decrease slightly.