Manganese professional committee of CFIA issues proposal
2020-05-29 17:20:07 [Print]
In order to avoid market risks, strengthen industry self-discipline and ensure smooth operation of the domestic steel industry, the manganese professional committee under China Ferroalloy Industry Association (CFIA) issued a proposal on May 28.
Influenced by the COVID-19 outbreak, spot prices of imported manganese ore kept rising and held high in China, resulting in higher and higher cost for manganese production enterprises. Meanwhile, the manganese alloy industry still witnessed overcapacity. To maintain the basic production and meet the demand of the iron and steel industry, the manganese professional committee with 35 manganese production enterprises proposed as follows:
1. To further strengthen self-discipline of the industry and suppress excess capacity to the maximum, the committee appeals manganese alloy enterprises that use 100% manganese ore to shut down completely and enterprises that use 50% manganese ore to cut production by 50%.
2. All manganese production enterprises affiliated to CFIA shall strengthen cost accounting, reduce various expenses to the greatest extent, and stabilize the production order during the period of production reduction or restriction.
3. Major manganese production enterprises affiliated to CFIA shall ensure the demand for key iron and steel companies, and balance the supply and demand as far as possible by minimizing manganese alloy supply to the futures market and traders.
Influenced by the COVID-19 outbreak, spot prices of imported manganese ore kept rising and held high in China, resulting in higher and higher cost for manganese production enterprises. Meanwhile, the manganese alloy industry still witnessed overcapacity. To maintain the basic production and meet the demand of the iron and steel industry, the manganese professional committee with 35 manganese production enterprises proposed as follows:
1. To further strengthen self-discipline of the industry and suppress excess capacity to the maximum, the committee appeals manganese alloy enterprises that use 100% manganese ore to shut down completely and enterprises that use 50% manganese ore to cut production by 50%.
2. All manganese production enterprises affiliated to CFIA shall strengthen cost accounting, reduce various expenses to the greatest extent, and stabilize the production order during the period of production reduction or restriction.
3. Major manganese production enterprises affiliated to CFIA shall ensure the demand for key iron and steel companies, and balance the supply and demand as far as possible by minimizing manganese alloy supply to the futures market and traders.
Ferro-manganese Mn 78%min, C 8%max IW Pittsburgh
Unit:USD/gt
China's medium and low carbon ferromanganese producers' inventory statistics by province by month
Unit: mt
