SMM

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