Manganese Matters€¦ · Web view · 2015-06-11High carbon ferro-manganese is also oversupplied...

Manganese Matters n° 11 (Issued June 11, 2015) 1The IMnI does not accept any responsibility for information, views or opinions contained in the articles reprinted in Manganese Matters, which are solely those of the publications credited.

MANGANESE MATTERSJune 11, 2015 - Issue n° 11

Article Index 3

IMnI UPCOMING MEETINGS

EPD General AssemblyFriday, June 1221:00 to 22:30Hainan Island

Statistics Committee MeetingTuesday, June 1609:00 to 10:30Shanghai

M&C Committee MeetingTuesday, June 1610:35 to 12:30Shanghai

Supervisory Board MeetingTuesday, June 1615:10 to 18:00Shanghai

International Manganese Institute17 rue Duphot75001 ParisFranceTel : +33 (0) 1 45 63 06 34Fax : +33 (0) 1 42 89 42 92E-mail : [email protected] site: www.manganese.org

IMnI 2015 Annual ConferenceLast Call! Register Now!

The 41st ANNUAL CONFERENCE will take place Tuesday, June 16 -- Thursday, June 18 in Shanghai at The Portman Ritz-Carlton.

This year’s theme: China at the Crossroads: Into the Mouth of the Dragon.A line-up of world class experts and speakers will be presenting, including James Kynge, Financial Times Emerging Markets Editor and author of "China Shakes the World: The Rise of a Hungry Nation" and Simon Baptist, Chief Economist, The Economist Intelligence Unit.

Registration forms and more information can be found here


http://www.manganese.org/events/upcoming-events

http://www.manganese.org/

mailto:[email protected]

http://www.manganese.org/events/upcoming-events


Manganese: The Global Picture – A Socio Economic Assessment

Socio-economic assessment (SEA) is the term used to describe a set of analytical tools and approaches for analysing the net social and economic impacts associated with a specific product, process or activity. It is an important tool for assessing the total contribution of an activity or sector to the economy, its overall impacts on society as a whole and the trade-offs involved in any policy decision that affects the productive activities of a sector. There is a growing recognition that industry benefits from being more proactive in the development and use of SEA. Indeed, many industry sectors have prepared their own SEAs with the aim of providing additional evidence on the contribution and role of their activities to economies around the world.

Manganese The Global Picture – A Socio Economic Assessment presents the findings of the first global SEA on Manganese (Mn).

The report, prepared by Risk & Policy Analysts, an independent UK-based consultancy, was commissioned by the IMnI in 2012. Several members participated as case studies, including Assmang, Eramet, Glencore, FerroAtlantica, Autlan, OFZ .

The report was just published and will be distributed at IMnI’s Annual Conference next month in Shanghai. If you are not attending the conference and would like to receive a hard copy, contact us at: [email protected]. And is also available on our web site here

Manganese Matters n° 11 (Issued June 11, 2015) 4

http://www.manganese.org/news-and-publications/mn-global-picture


IMnI Supervisory Board Re-Elected for a 2 nd Term

Following IMnI’s 2nd democratically held elections last month, the outgoing members of the Supervisory Board were all re-elected for another two-year term. No other candidates came forward, thus highlighting members’ overall satisfaction with the present team.

The Supervisory Board members are:

The Supervisory Board will elect the officers at its next meeting on June 16 in Shanghai and these will be ratified at the General Assembly the following day.


Special Discount for Metal Bulletin Conference in Istanbul

IMnl has negotiated a 15% discount* for IMnI members to the 31st International Ferro-Alloys Conference which will be held in Istanbul from November 8 to 10. Program and information can be retrieved here.

To take advantage of the special discount, please register on Metal Bulletin’s website here using this code: IFA15IMnI or send an email to [email protected]

*Applied to first two delegates from named company only. Not applicable to existing discounted registrations.

The Manganese Showcase SymposiumOctober 14-15, 2015 – Save the Date!

The International Manganese Institute (IMnI) launched an ambitious 5-Year Plan in 2011 to cover scientific knowledge gaps regarding the impacts of manganese on human health and the environment The 5-Year plan is now completed and has produced significant new research. These new studies will be showcased at a dedicated symposium, addressing four major themes:

Evolution of Manganese Occupational and Environmental Exposure Guidelines Toxicological Research on Manganese Manganese Environmental Footprinting How the New Science can be used for Regulatory Compliance.

Speakers include representatives from relevant regulatory agencies, industry and academia. This workshop will serve as a forum for leaders in risk assessment, risk management and communication-related areas to come together to debate on the latest advancements in Mn research and how they can be best applied.

The symposium will take place at the University of Ottawa, Canada, from October 14-15, 2015.

Admission is free.

More information will be provided soon.



https://www.metalbulletin.com/events/register/8151/31st-international-ferro-alloys-conference.html?EventId=8151

http://www.metalbulletin.com/events/details/8151/31st-international-ferro-alloys-conference/details.html



IMnI 41 st Annual Conference June 16-18, 2015The Portman Ritz-Carlton Hotel – Shanghai

METEC Trade Fair & 2 nd ESTAD 2015 June 15-19, 2015Düsseldorf, Germany

7th South African Ferro Alloys Conference3-4 Septebmer 2015Crowne Plaza, Johannesbug

CRU Ryan's Notes Ferroalloys Conference18-20 October 2015The Kierland, Scottsdale

31st International Ferro-Alloys Conference8-10 November 2015Hilton Bomonti Hotel, Istanbul


https://www.eventsforce.net/cru/frontend/reg/tSelectBookingMode.csp?pageID=91365&eventID=205&tempPersonID=362621&eventID=205

http://www.metalbulletin.com/events/south-african-ferro-alloys-conference/details.html

http://www.metec-estad2015.com/

ARTICLE INDEX

ASIA (OTHER) New Malaysia Mn projects could challenge India’s top production spot ............................ 02/06/15 Gulf Manganese shareholder boosts stake in company .................................................... 02/06/15

CHINA China to shutter 940,000t/yr ferro-alloys capacity in 2015 ................................................. 08/06/15 WISCO increases FeSi tender price, rolls over SiMn in June ............................................ 04/06/15 HBIS to cut FeSi and SiMn tender volumes in June .......................................................... 02/06/15 China’s manganese metal exports down 9.34pc in April ................................................... 02/06/15

INDIA Commerce reviewing Indian silico-manganese ................................................................. 08/06/15 Mixed fortunes for NBV's ferro-alloys output ...................................................................... 02/06/15 Indian silico-manganese prices slide on lack of demand, oversupply ................................ 02/06/15 India market report: silico-manganese rises on power tariffs ............................................. 02/06/15 Chhattisgarh ferro-alloy producers want price rise ............................................................. 02/06/15

EUROPE High electricity prices hamper FerroAtlantica electrolytic Mn plans ................................... 05/06/15 EU ferro-alloy producers will face obstacles with operating permits .................................. 01/06/15 No dividend issued for 2014 due to tough markets- Eramet .............................................. 01/06/15

CIS

OCEANIA Eclipse extends Mn survey at Queensland project ............................................................ 28/05/15

AFRICA & MIDDLE EAST Announcement Assmang (Pty) ltd -Cato Ridge Works ...................................................... 10/06/15 South32 delays restarts of some S African ferromanganese furnaces .............................. 09/06/15 S Africa mine companies have new labour union boss to confront .................................... 08/06/15 Rand hovers near 13-year lows after Fitch holds rating at BBB ........................................ 08/06/15 S Africa miners eye currency markets ahead of ratings call .............................................. 05/06/15 Ferrex expects new Mn mine permit at Togo project ......................................................... 04/06/15 Excalibur hopes for manganese luck in Zambia ................................................................ 04/06/15 Australian juniors buy Zambian manganese venture ......................................................... 04/06/15 S Africa rand weakness again underpinning mining and metals sector ............................. 02/06/15 Eramet Gabon Mn project on track to hit SiMn, metal output levels .................................. 02/06/15 S Africa plays increasing role in exporting ferro-alloy technology ...................................... 01/06/15 S Africa’s Eskom flags respite from power load-shedding ................................................. 01/06/15 Anglo American in leadership changes to oversee S Africa operations ............................. 28/05/15

AMERICAS US SiMn market stabilises losses on end-user support ..................................................... 05/06/15 Brazil’s manganese ore exports rise in May ...................................................................... 04/06/15 Brazil foundry output down 10.2pc in April ......................................................................... 04/06/15 US Mn alloys imports mostly up in January 2015 .............................................................. 02/06/15

GENERAL INFORMATION MANGANESE ORE INDEX: High grade prices surrender gains ....................................... 08/06/15 WEEK IN REVIEW: Summer slowdown comes early ........................................................ 05/06/15 Next Infacon to be held in South Africa in 2018 with new chairman of ICF ........................ 04/06/15


The 9th China Ferro-Alloys International Conference23-25 May 2012, Great Concordia Hotel - Beijing

IMnI 38 th Annual Conference June 12-14, 2012 – The Ritz Carlton - Cancun

MB 28 th International Ferro-alloys Conference November 11-13, 2012 – Intercontinental - Berlin

http://www.metalbulletin.com/EventDetails/0/4509/28th-International-Ferro-alloys-Conference.html

http://manganese.org/events/upcoming_imni_events/2012_imnis_38th_annual_conference

http://www.ferro-alloys.com/

Ferro-alloy prices trending lower in early June .................................................................. 03/06/15 TAPPED IN – the ores and alloys blog: How one canny consumer shook up the silico ... . 01/06/15 Silico-manganese hits 17-month low on poor demand ...................................................... 01/06/15 WEEK IN REVIEW: US growth reverse puts damper on metals markets .......................... 29/05/15 MANGANESE ORE INDEX: High grade prices increase for second week running ........... 29/05/15 Manganese markets see downturn in Feb – ImnI .............................................................. 29/05/15 EUROPEAN MORNING BRIEF: Key stories on May 29 ................................................... 29/05/15 ASIAN MORNING BRIEF: News and price moves on May 29 .......................................... 29/05/15 SiMn shutdowns offset by weak demand – IMnI ................................................................ 28/05/15 Manganese ore prices knocked by oversupply, ample stocks – IMnI ................................ 28/05/15

STEEL NEWS New steels will change the demand picture for ferro-alloys ............................................... 05/06/15 US steel market shows signs of pickup ............................................................................. 04/06/15 World steel prices up in May for first time in 12 months – MEPS ....................................... 01/06/15 Weak demand undermines steel growth in emerging markets .......................................... 01/06/15 Eurofer files complaint at EU on Italy steel aid .................................................................. 29/05/15

OHES & SCIENCE

OTHER

************************

EMM Europe Mn spot market climbs on short covering .............................................................. 08/06/15 Mn flake price uptrend continues in China ......................................................................... 08/06/15 China manganese briquette exports down 13.09pc in April 2015 ...................................... 05/06/15 China Mn flake prices rise, key stainless steelmakers release tenders ............................. 04/06/15 European Mn market sees stronger price offers on China ................................................. 02/06/15 Chinese manganese flake prices edge up on lower output ............................................... 02/06/15

EMD


THE MANGANESE INDUSTRY

ASIA (OTHER) back to index

New Malaysia Mn projects could challenge India’s top production spotMetal-Pages 02/06/2015

Manganese alloy projects being developed in Malaysia have the potential to challenge India’s position as one of the top producers, Aloys D’Harambure, Market Research Manager at the International Manganese Institute told delegates at the Infacon ferro-alloy conference.

This was because of Malaysia’s access to cheap ore, cheap labour and cheap electricity, he said.

The manganese alloy market remains in oversupply, particularly in silico-manganese where supply outstrips demand fourfold. High carbon ferro-manganese is also oversupplied but to a far lesser extent and refined ferro-manganese market is close to being in balance.

Into this oversupply situation Malaysia is bringing in new silico-manganese production starting this year and because of its low cost of production could threaten India’s position, particularly as a supplier to other Asian countries. Indian producers are already challenges with exports to Europe because of anti-damping issues which have caused producers such as Indsil to temporarily suspended production this year.

Malaysia is gaining an edge over competitors, including South Africa, particularly in terms of its electricity costs because producers managed to negotiate a 10-year flat rate contract with the local electricity supplier, D’Harambure said. In contrast South African producers have to deal with higher electricity costs and unreliable electricity supplies.

The projects in the pipeline include ASX-listed OM Holdings developing a ferro-silicon and manganese alloy smelting project in Sarawak in Malaysia which is expected to ramp up production by the end of this year. The smelter will have a capacity of 250,000t in the first stage and another 100,000t will be added by 2018.

African Rainbow Minerals is working on a three-way joint venture with Sumitomo and Taiwan’s China Steel to develop the Sekura ferro-alloys project, also in the Sarawak region, which will produce 170,000t of ferro-manganese and silico-manganese by 2017.

Apart from the projects in Malaysia other projects in the pipeline include Kalagadi Manganese manganese mine and smelter in South Africa, a new project in China and Gulf Mineral’s group high carbon ferro-manganese alloys in Timor, eastern Indonesia.

Despite the planned new production some of the oversupply in silico-manganese is being worked down due to plant closures in Brazil and India. Excess production in China is also being whittled down because of high electricity tariffs, stricter environmental regulation and reduced demand from domestic steel producers.

Gulf Manganese shareholder boosts stake in companyMetal-Pages 02/06/2015 Gulf ManganeseASX-listed Gulf Manganese Corporation (GMC) substantial shareholder Leprechaun Holdings has increased its stake in the company to 33.88pc, from 27.25pc, through the conversion of convertible notes.


Leprechaun converted the notes into 7.5mn at $0.03 each, taking its total holding up to 27.6mn shares. Gulf Manganese Corporation, formerly Gulf Minerals Corporation, is looking to develop manganese projects in Indonesia and Turkey. Leprechaun Holdings was incorporated in 2010 and is based in Australia. Late last month the company received a study highlighting the financial project economics of its planned manganese smelter in Timor that may return EBITDA of almost $624mn within 20 years. In Indonesia there is government support of a 10-year tax holiday, and corporation tax is 25pc. The company is also intending to list on the Singapore Exchange. The company is planning to build eight furnaces in four years. The latest study highlighted the benefit of having access to high quality manganese ore, access to existing port and infrastructure as well as lower than average industry costs. The plant be capable of annually producing 144,000t of ferro-manganese alloy and 180,000t of manganese lump ore. In the first year, high grade manganese ores will be bought and treated via a jigging process to produce lump manganese ore.

CHINA back to index

China to shutter 940,000t/yr ferro-alloys capacity in 2015Metal-Pages 08/06/2015

China’s Ministry of Industry and Information Technology (MIIT) has released a list of production capacity to be phased out in 2015. About 940,000t/yr of ferro-alloys capacity will be shuttered this year in Guangxi, Inner Mongolia, Guizhou and Sichuan province.

MIIT is planning to eliminate about 229,000t of outdated silico-manganese capacity, 89,500t of silicon capacity, 16,100t of ferro-silicon capacity and 14,050t of calcium silicon capacity this year.

The reduction is expected to help in the integration of resources, but some producers are building bigger furnaces in order to retain their market share after the phasing out of smaller plants, which will result in increased capacity.

The Chinese ferro-alloys market has been depressed by overcapacity so producers should be cautious about building bigger furnaces, industry sources said.

WISCO increases FeSi tender price, rolls over SiMn in JuneMetal-Pages 04/06/2015

Wuhan Iron and Steel (WISCO), one of the largest steelmakers in southern China, has unveiled its ferro-alloys tender prices for delivery in June.

The tender price for ferro-silicon 72pc grade is up by RMB50/t compared with May, and the tender price for silico-manganese 65/17 grade is unchanged.

But the steelmaker has lowered its tender prices for ferro-manganese due to the sluggish manganese alloys market. The tender price for high carbon ferro-manganese 75pc grade down by RMB100/t, and the tender price for medium carbon ferro-manganese 75C2.0 grade is down by RMB200/t compared with the previous month.


Ferro-silicon producers have increased their prices since the end of May in response to tight prompt supply, and the steelmaker has to increase its tender price to buy sufficient material for its production requirement in June.

HBIS to cut FeSi and SiMn tender volumes in JuneMetal-Pages 02/06/2015

Hebei Iron and Steel Group (HBIS), the largest steelmaker in China, has started its monthly purchases for delivery in June this week. Ferro-alloys tender prices are expected to be unveiled at a later date.

HBIS is planning to buy 3,700t of ferro-silicon 72pc grade for its production requirement in June, a fall of 380t compared with its purchase in May, and the steelmaker intends to buy 27,610t of silico-manganese this month, a drop of 2,240t compared with the previous month.

But the steelmaker wants to increase its tender volume of high carbon ferro-manganese to 2,720t, an increase of 740t, and it intends to buy 1,300t of medium carbon ferro-manganese 78C2.0, a decrease of 240t and 440t of medium carbon ferro-manganese 78C1.5 a fall of 360t compared with May.

HBIS’s ferro-alloys tender prices are expected to stop falling or increase slightly this month in response to tight prompt supply, although the steelmaker is planning to cut its ferro-silicon and silico-manganese tender volumes.

China’s manganese metal exports down 9.34pc in AprilMetal-Pages 02/06/2015

China exported 25,754t of unwrought manganese (mostly in the form of manganese flake and lump) in April, down 9.34pc from 28,407t in the same month of 2014, according to official customs data.

In April, Chinese manganese prices kept falling amid thin purchases and an oversupplied market. Demand decreased as some domestic key stainless steelmakers cut ouput of 200 series of stainless steel due to depressed prices. In line with softening domestic prices, export prices dropped.

From January to April 2015, China exported 51,484t of manganese metal (mostly in the form of manganese flake and lump), down 44.85pc from 93,351t in the same months of last year.

INDIA back to index

Commerce reviewing Indian silico-manganeseMetal Bulletin 08/06/2015

The US Commerce Department is conducting an administrative review of an anti-dumping duty order on imports of silico-manganese from Nava Bharat Ventures Ltd, Hyderabad, India, from May 1, 2013, through April 30, 2014.

The agency made a preliminary determination that Nava did not make any sales of the product during the period of review.

Interested parties are invited to comment on the preliminary result.

Mixed fortunes for NBV's ferro-alloys outputMetal-Pages 02/06/2015


Indian ferro-alloy producer Nava Bharat Ventures (NBV) produced 84,000t of silico-manganese in the financial year to March, up by 38.7pc.

The rise was attributed to a switch in focus from ferro-chrome to silico-manganese at its Orissa facility because of a shortage of chrome ore from Indian steelmaker Tata Steel, with which it has an agreement to convert supplier-provided chrome ore into ferro-chrome, during the fourth quarter of the financial year.

The company has faced a number of challenges over the past year, with higher costs and lower demand in particular making an impact in the fourth quarter. The company is in discussions about the renewal of its chrome conversion agreement with Tata, but any deal is dependent on the latter resolving logistical and regulatory issues, NBV executive director GRK Prasad said.

NBV expects another difficult year, with higher costs remaining a problem, and weaker steel demand continuing to affect ferro-alloy consumption. But NBV will look to increase production if demand increases, Prasad said.

Indian silico-manganese prices slide on lack of demand, oversupplyMetal Bulletin 02/06/2015

Indian silico-manganese prices fell back on Tuesday June 2 due to a dearth of demand and chronic oversupply.

Metal Bulletin’s quotation for silico-manganese fob India slipped as producers continued to report a lack of buying interest.

Indian smelters are suffering from very poor demand and are cutting production levels to as low as 50% and selling material at a loss in the hope of clearing some of the backlog of material.

"There is no demand," a producer told Metal Bulletin. "There’s absolute silence from Europe and few enquiries from the Gulf and Southeast Asia."

A few small sales were concluded in Metal Bulletin’s range over the past week, but the anticipated pick-up in the domestic market has not materialised, and some producers are struggling to shift material.

"We have had a couple of enquiries, which we are negotiating at the moment, but I haven’t been able to close a single deal this week," another producer said. "It’s a buyers’ market and the price is falling."

"We’ve cut production to about 50% in the hopes of reducing the supply to the market and summer looks like it will be quiet," a third producer said. "But I am hopeful that prices will improve at the end of the year."

Traders, however, were pessimistic about demand in India picking up in the near future, noting that it is difficult to sell into Europe due to the live anti-dumping investigation into India's silico-manganese exports to Europe and that oversupply is likely to plague the Indian market for at least the rest of the year.

"Nobody wants Indian material at the moment," a European trader said. "You can’t send it into Europe, and the only other place it might be allocated is Russia, but they aren’t buying there at the moment."

"There is a massive structural overcapacity," he said. "About one million tonnes of production should never have been built and the pick-up the producers were hoping for in the domestic market is not forthcoming."


The lack of demand is affecting most silico-manganese producers around the world, a second trader told Metal Bulletin, adding that he has only been experiencing good demand in South Africa.

"Demand is very quiet in India at the moment, and nobody is looking for material anywhere other than South Africa," the second trader said. "We are doing considerable business over there."

European prices slid last week to 17-month lows as scant buying offset the production cuts made by producers attempting to support prices.

India market report: silico-manganese rises on power tariffsMetal-Pages 02/06/2015

Prices in the domestic silico-manganese market have risen. The spot price has increased by Rs1,000-1,500/t. The increase follows a 16-20pc rise in power tariffs in the state of Chhattisgarh from June 1, 2015. The state has a number of units that manufacture silico-manganese and the rise in power rates has caused producers to raise their offer prices.

Manganese oreThe market for manganese ore in India is weak with few transactions and low demand, mirroring the international market. Demand from China for manganese ore is low and this has led miners to switch their focus to India and offer lucrative deals to Indian alloy producers.

Domestic ore producers have kept offers stable.

Chhattisgarh ferro-alloy producers want price riseMetal-Pages 02/06/2015

Ferro-alloy producers in Chhattisgarh state, India, plan to implement price increases for manganese alloys because of rising power prices in the region.

Accounting for nearly 20pc of the country's ferro-alloy capacity, the 31 production facilities in the state have seen costs increase by an estimated 3,000 rupees/t ($46.99) since the start of this month because of rising energy costs. This has resulted in a number of producers moving to a programme of gradual price increases starting with rises of Rs500-1,000/t over the coming weeks, with the final goal of realising the full cost increase in prices.

Producers are reluctant to implement the full cost increase in end-user prices immediately because of slim demand from the domestic steel industry, believing the more gradual increase approach to be the fairest and most likely method to gain acceptance from buyers.

There has been some indication from producers that if they are unable to increase prices in line with their rising costs, some may look to reduce output as a means to protect their margins, but there has been no indication of this happening yet.

CIS back to index


EUROPE back to index

High electricity prices hamper FerroAtlantica electrolytic Mn plansMetal-Pages 05/06/2015

Spanish ferro-silicon producer FerroAtlantica developed a pilot programme for the production of electrolytic manganese from waste from manganese alloy production but high electricity costs in Spain made production economically unviable, company director Alberto Fuentes Alvarez told delegates at the Infacon conference.

“We run a pilot plant in Spain where we have five plants producing ferro-silicon and silico-manganese and we have easy access to the waste material from those plants. We could not make it viable because the project makes financial sense at electricity prices of €40/MWh. However, in Spain are on average €50/MWh and they fluctuate so widely, they change from hour to hour,” Alvarez said.

Now the company is looking to sell the technology to producers in countries with cheaper electricity. The process is also applicable in zinc production because waste from zinc refining can also contain high levels of manganese and lead.

FerroAtlantica produces 1mn per year of ferro silicon, silicon alloys and manganese alloys and has five facilities in Spain, six in France and production in Venezuela, China and South Africa. The company also plans to start building a plant in Quebec in 2016.

The manganese is obtained from ferro-alloy production at a closed furnace using wet scrubbers to capture manganese oxides. FerroAtlantica’s plants in Spain generate 20,000t of sludge a year which has a manganese content of between 20pc and 30pc. Dealing with the waste generates a cost for the company but the process would make it possible to turn the sludge into a source of income. The project plant generated about 3,000t of 99.9pc electrolytic manganese, which is mainly used by aluminium producers.

The waste from that process is inert and contains some minor metals like cadmium and cobalt but these metals could not be separated in an economical way, Alvarez said.

EU ferro-alloy producers will face obstacles with operating permitsMetal-Pages 01/06/2015

Operating permits for ferro-alloy furnaces in Europe will be affected by key regulatory changes to the EU’s Industrial Emissions Directive which is expected to be drafted in 2016 and to be put in practice four years later, said Nadia Vinck from Euro Alliages, the Association of European Ferro-alloy Producers.

The Industrial Emissions Directive defines the levels of pollutants manufacturers will be allowed to release into air or water and will also define best available technologies producers will be expected to adopt. In some cases this is far from the technologies used by the industry at present. It will significantly add to the cost of production putting European producers further into disadvantage in terms of cost against their Chinese or Indian competitors.

Worryingly for the ferro-alloy industry, the EU is currently only considering regulation for closed submerged arc furnaces where about 40pc of ferro-alloy production in Europe is done in semi-open furnaces.

Vinck said at the Infacon Ferroalloy conference in Kiev today that although Euro Alliages brought this to the attention of the legislators this has so far fallen on deaf ears.

The EU will also expect companies to adopt best available technologies, which will be defined by the EU, and will guide local authorities in the issuing of operating permits, she said.


One such best practice will be the use of wet scrubbers and electrostatic precipitators (ESP) in gas cleaning devices which treat the fume captured from furnace operations. However, Vinck said that most of the producers use only wet scrubber technology rather than combination of the two.

The new requirements will include reduced toxin levels such as mercury or permitted levels of chromium and cadmium pollution. Mercury emission initial requirement will be between 0.01-0.05mg per cubic metre while the total emission limit on chromium will be 0.2mg per cubic metre, something ferro-chrome producers will find hard to achieve. There are also considerations about consumption of energy and dust, sludge and slug production, all of which will be monitored by the EU.

The upshot of the regulation is that the cost of production will increase dramatically and for some plants some of the requirements may be unattainable, said Vinck.

No dividend issued for 2014 due to tough markets- ErametMetal-Pages 01/06/2015 Tough tradingFrench mining group Eramet, which produces manganese ore, manganese alloys and nickel, will not be paying a dividend to shareholders for 2014 due to "difficult market" conditions, according to a statement from chief executive Patrick Buffet. Last year, "in a context of difficult markets", the Group's current operating income strengthened, from 2013, to €75mn, from €45mn, he said. The year was marked on substantially greater productivity gains and cost reductions, which together amounted to more than €100mn, he said. "Since the start of 2015, nickel and manganese prices have decreased significantly compared with 2014, which will necessarily weigh on the group's performance in the first half. "On every level in the group, the priority is maintained to continuously improve performance in order to emerge from the metals sector's highly depressed current environment with greater competitiveness." Eramet has a strong financial situation and about €2bn in financial liquidity, he said. According to the company website, however, manganese ore and nickel prices dropped quarter-on-quarter in Q2 2015. Experts expect nickel prices to recover by the end of 2015, pushed up on the effects of the Indonesian ban, as the majority of metal and ore stocks accumulated before 2014 are expected to be slowly absorbed, it said. Manganese alloys and ore Eramet Alloys is benefiting from strong demand from the aerospace market, although certain programmes are expected to see a slowdown before the end of 2015. European manganese alloys prices have been fairly stable in the past three years, according to Metal-Pages assessed data. However, benchmark manganese ore has fallen 30pc since the start of 2015 due to weak demand and high stock levels at ports in China.


Industry sources reckon the price of ore, which rode the construction and property boom in China, may be low key through 2020 when the market may recover to its average last year. In 2014, Eramet Manganese was faced with weaker manganese ore prices, partly resulting from the ramp-up of new South African competitors, but also slower growth in Chinese demand, the company stated on its website. Eramet Manganese successfully started production on two major projects: Grande Côte in Senegal and C2M in Gabon. In Moanda, Gabon, the silico-manganese plant, the only manganese ore processing plant in sub-Saharan Africa, came on stream. It comprises a 65,000t/yr silico-manganese plant and a 20,000t/yr manganese metal plant. The official inauguration is set for later this month. Last year, company manganese ore production decreased slightly, totalling 3.4mn t. That drop is mostly due to a major derailing incident that happened in Spring last year.

OCEANIA back to index

Eclipse extends Mn survey at Queensland projectMetal-Pages 28/05/2015

Target Mn oreAustralian Perth-based minerals explorer Eclipse Metals has extended testing at its manganese project at Mary Valley in Queensland, measuring deeper seams of material. The testing was done to better understand and measure manganese mineralisation in the area, the company said. Mary Valley had historic production of above 31,000t of ore grading at 42-51pc manganese. Recent rock chip samples returned high grade assays up to 52pc manganese, as well other samples of almost 41pc manganese. The company was last month given an extension on the project from local authorities in Queensland until April 2020. West Mary Valley covers over 30sq km, with two known historical manganese workings within the project area. Historical sampling of mineralisation returned assays in the order of 44pc manganese. The results mark follow the identification of potential for at least 167,000t of high grade manganese mineralisation.

AFRICA & MIDDLE EAST back to index

Announcement Assmang (Pty) ltd -Cato Ridge Works10/06/2015

Assmang has recently completed a review of its Mn alloy smelting operation at Cato Ridge in Kwazulu- Natal. Due to continuing depressed market prices and the continued increases in input costs such as electrical power, the decision has been made to close one of the High Carbon Ferromanganese furnaces and to right size the workforce at Cato Ridge to continue with only three of the four furnaces for the foreseeable future.

High carbon ferromanganese production will thus continue on 3 furnaces and the refined Mn alloy joint venture operation, Cato Ridge Alloys (Pty) Ltd will not be affected and continue to produce at capacity."

South32 delays restarts of some S African ferromanganese furnaces


Mining Weekly 09/06/2015

Triple-listed South32 will delay the the restart of three of its four high-carbon ferromanganese (HCFeMn) furnaces at its Metalloys manganese alloy operation in South Africa, owing to a 20% decline in alloy prices.

The company noted on Tuesday that no permanent employees would be retrenched as a result of the temporary suspension.

South32, in its capacity as manager of the 60:40 Samancor Manganese joint venture (JV) with Anlgo American, was also engaging with freight logistics group Transnet to secure access to the rail and port capacity required to export additional manganese ore from its South African mining operations; however, export volumes would remain dependent on market conditions.

The company confirmed that a review of the fair value of its interest in the Samancor Manganese JV was also under way.

The process was expected to have implications for the fair value adjustment required pursuant to the conclusion of the amended and restated umbrella agreement governing the JV.

Samancor Manganese was the world’s largest producer of manganese with operations in South Africa and Australia. Its Australian operations include Gemco, an opencut manganese mine in the Northern Territory, ranked as the largest and one of the world’s lowest cost manganese ore producers, and Temco, a manganese alloy plant in Tasmania.

The JV’s African operations included the Hotazel manganese mines located in the Kalahari basin in the Northern Cape, a region that held 80% of the world’s manganese resource endowment.

S Africa mine companies have new labour union boss to confrontMetal-Pages 08/06/2015

South African mining companies have a new force to deal with – the newly appointed general secretary of the National Union of Mineworkers (NUM), David Sipunzi.

Elected last Friday to take over from Frans Baleni, who held the influential post for a decade, Sipunzi is a seasoned union leader, but it remains to be seen what strategies he will adopt in the often acrimonious relationship between miners and employers.

Currently, the NUM is in wage negotiations with the country’s major gold mines, demanding increases of as much as 80pc for the lowest paid workers.

Several mining companies in the precious and base metal sectors are cutting back on staff numbers as they seek to reduce overheads at a time when commodity prices are in the doldrums.

Last year South Africa suffered its longest and most expensive strike when platinum miners downed tools at the world’s three largest platinum producers. This strike, orchestrated by the NUM’s opponent, the Association of Mineworkers and Construction Union (AMCU), lasted over five months and cost the industry more than $2bn in lost income, more than one million ounces of platinum and the country over $5bn in economic activity.

Alarmingly, AMCU, which is in a turf war with the NUM, has said it will embark on a wildcat strike if gold employers impose a wage deal on its members as a result of the negotiations with the NUM.


Public sector workers in South Africa were recently granted a pay increase deal that will see the public sector wage bill surge by more than ZAR60bn (around $4.8bn) over next three years. Mining companies, however, cannot afford these sorts of rises and are looking to reduce staff and stabilise wage costs in a weak global commodity environment.

Adding further uncertainty to labour relations in metals and manufacturing sector is the expulsion of the National Union of Metalworkers of South Africa (Numsa) from the Confederation of South Africa Trade Unions (Cosatu). This union organised a month long strike last year.

Rand hovers near 13-year lows after Fitch holds rating at BBBMetal-Pages 08/06/2015

The South African rand remains near 13-year lows Monday after narrowly escaping a downgrade from ratings agency Fitch at the end of last week.

While Fitch maintained its BBB rating on South Africa, it warned that if the country’s energy supply crisis is not sorted out, it could just be matter of time before Africa’s most advanced economy loses its investment grade status and slides into junk bond territory.

At around ZAR12.55 to the dollar mid-afternoon, the local unit is slightly better than the ZAR12.71 it plunged to on Friday, its lowest level since December 2001. The rand has lost around 8pc against the dollar this year, underpinning the earnings of many commodity and metals exporters.

Meanwhile, struggling power utility Eskom – which gave the country a reprieve from load-shedding last week – has flagged that some stage one power outages could take place this week, despite the Medupi power station adding its first 800MW to the grid last week and 900MW coming back to the grid from the Koeberg nuclear power station.

At the weekend, the country’ energy minister announced the names of 13 preferred bidders to provide 1,084MW of renewable energy which will include solar and wind sourced power.

S Africa miners eye currency markets ahead of ratings callMetal-Pages 05/06/2015

South Africa’s mining and metals community are closely watching the fortunes of the rand which could today be impacted by ratings agency Fitch and US non-farm payrolls.

Currently trading at around ZAR12.40 to the dollar, marginally off its lowest level for this year, the local currency could plummet further if Fitch downgrades the country’s credit rating from BBB status. US non-farm payrolls are a strong indicator of when the US will start raising interest rates.

While the weak rand is good for the earnings of many mining and metals companies who have dollar-based income, it also sharply raises local inflation and input costs. The rand has shed around 7pc against the dollar this year, underpinning the earnings of many resource producers.

Earlier this week, it was revealed that business confidence in South Africa plunged to a 16-year low in May, partly due to the spate of power outages that have been experienced across the economy since November last year.

Although the power supply situation has stabilised after the addition of 1,700MW of capacity to the national grid in the past week, there are constant concerns that load-shedding will remain a factor for several years until new power generation projects are completed.


There are also major concerns that struggling power utility Eskom may at the end of June be granted a second double digit tariff increase for the 2015/16 year, which would take its price hike for the year to 25.3pc, four times the rate of local inflation.

Ferrex expects new Mn mine permit at Togo projectMetal-Pages 04/06/2015 Nayega projectUK-based mining exploration company Ferrex says it is confident it will be awarded a mining permit for its Nayega manganese project in northern Togo in the next few months. The explorer recently published a maiden reserve for Nayega after its work on a definitive feasibility study for the project. In the half-year the company further advanced its definitive feasibility study at Nayega, exploring the viability of a 250,000t/yr 38pc manganese product in a 10-year operation. That study was completed after the year-end in May. The company expects the mining permit to be issued soon after the formation of a new government in Togo now that the presidential elections are complete. It is in talks with "several parties" about funding the capital costs for construction of the Nayega mine, and it is expecting due diligence evaluation and field visits in the second half of its financial year. "We look forward to reporting good news in the next period - grant of the Nayega Mining Permit, funding secured for development and a definite timeline to construction," the company said in a statement. The new reserve is 8.48mn t at 14pc manganese and Ferrex wants to use Nayega as a short-term source of cash to fund its other projects. New licence applications are pending at the Leinster manganese project in South Africa. Ferrex has a 74pc share in Leinster. Consultants Coffey Mining have defined an exploration target, which is compliant with JORC standard, of between 5.5 and 8.7mn t at a grade of 28.6-31.3pc manganese at the project. The target is open in all directions. Ferrex posted a loss of £659,000 in the half year to March, mostly related to the development work at Nayega. At 31 March the group had cash of £452,000.

Excalibur hopes for manganese luck in ZambiaMining Weekly 04/06/2015

Junior explorer Excalibur Mining has its eye on a manganese deposit in Zambia.

The ASX-listed junior reported on Thursday that the company would partner with Pinto Minerals to acquire a 75% shareholding in Maybach Mining Services, which holds the early stage production asset. In exchange for its 50% interest in Maybach, with Pinto holding the remaining 25% interest, Excalibur would issue 10-million of its own shares and would provide a $250 000 convertible note fund to Maybach by the end of August this year, to fund the expansion of production at the Zambian asset.

Excalibur would also provide additional convertible notes of $350 00 by the end of February next year, to further expand production.

Once Maybach had achieved an earnings before interest, taxes, depreciation and amortisation (Ebitda) of $1-million over a 12-month period, Excalibur and Pinta would make a $300 000 milestone payment.


A further $500 000 would be payable, along with the issue of a further five-million shares in Excalibur, upon Maybach achieving Ebitda of $5-million over a 12-month period. The transaction was subject to due diligence and shareholder and regulatory approvals.

Australian juniors buy Zambian manganese ventureMetal-Pages 04/06/2015 New ventureAustralian Perth-based junior miners Excalibur Mining and Pinto Minerals have signed an agreement to buy a 75pc stake in an early stage producing manganese deposit in Zambia from Maybach Mining (Mining Zambia). ASX-listed Excalibur will issue 10mn ordinary shares to Maybach for its 50pc stake in the lease, which is located close to a processing plant. It will also provide to Maybach convertible note funds of $250,000 by 31 August 2015 and $350,000 28 February 2016 to fund an increase of production. Once Maybach has achieved an earnings before interest, tax, depreciation and amortization of $1mn in a 12-month period, Excalibur and Pinta will make a $300,000 milestone payment. A further $500,000 will be payable, along with the issue of a further five-million shares in Excalibur, upon Maybach achieving an earnings before interest, tax, depreciation and amortization of $5mn in a 12-month period. The deal was subject to due diligence and shareholder and regulatory approvals. No further details were given. However, according to the website of Maybach, it has two new prime leases in Zambia with high grade manganese ore, ranging from 40-60pc and viable for immediate production. Mining works started on site in September last year, it said, with first phase monthly production ranging from 500-2,000t per month. Final phase will see monthly production at 10,000t, using mechanised methods.

S Africa rand weakness again underpinning mining and metals sectorMetal-Pages 02/06/2015

The weakness of the South African rand is again underpinning the operations of several of the country’s dollar-earning mining and metals companies.

At around ZAR12.28 to the dollar, the local currency is flirting with resistance levels which could see it head back up towards the ZAR12.46 mark, reached in mid-march, its weakest level in 2015.

Worries about Greece, general unease about emerging markets, and a pullback to dollar-based assets has hit the rand which was trading at ZAR11.74 just two weeks ago.

For dollar earners - such as chrome mines, chrome furnaces and smelters, platinum group metals producers, gold mines, manganese producers and the like – the soft local currency is acting as something of a buffer against weak commodity prices.

Ferro-chrome producers, for example, are being helped by the rand which was trading at around ZAR11.58 to the dollar in mid-February when the European ferro-chrome benchmark was $1.08/lb. In the last month of the second quarter, the rand is 6pc weaker and the benchmark is still the same at $1.08/lb.


From a production point of view, most of the country’s commodity producers have been able to navigate their way around electricity outages without much disruption to their productivity. Power utility Eskom said at the beginning of this week that it expected power supply to become more stable after carrying out widespread power station maintenance and adding the first 800MW of power from its long delayed Medupi power station.

Despite the improving outlook for many of the country’s mining and metals companies, analysts say the jury is still out on whether they are good investments at a time when most other sectors of the equities market are looking expensive and ripe for a major sell-off.

Eramet Gabon Mn project on track to hit SiMn, metal output levelsMetal-Pages 02/06/2015

Eramet is on track to achieve planned production levels for manganese metal at its new plant in Gabon, Patrice L’Huillier, chief operating officer of Eramet’s Mangnese Division, told delegates at the Infacon ferro-alloy conference.

The Comilog operations, a joint venture with the Gabon government, produced its first ferro-manganese in August last year and its first manganese metal in February this year. It will eventually produce 65,000t of silico-manganese and 20,000t of electrolytic manganese metal annually.

This means that Eramet, the world’s second largest producer of high grade manganese ore and the largest producer of refined manganese alloys, remains on track to produce 4mn t of manganese ore per year. In 2014 the company produced 3.7mn t of manganese ore and sinter.

“The deposit in Gabon is a world class deposit that doesn’t require much stripping. People don’t call it mining, they call it gardening,” L’Huillier said referring to the easy access to the Camilog deposit. The thickness of the mineralisation is 5m, it is oxidised ore with very high manganese content.

Eramet has built the $220mn metal plant to treat the ore from the Comilog deposit in response to a push from the Gabonese government to have more metal processing in the country and to steer the country away from mainly exporting unprocessed manganese ore. Gabon is the world’s second largest producer of manganese ore.

As part of this push the government has bought a nearly 30pc stake in Comilog last year. It has also built a 160MW power plant 60km from the mine which provides the plant with affordable electricity.

One of the issues still required for the industry to expand in Gabon is a skilled work force but the situation is improving with the presence of mining companies like Eramet. It took a year to train the staff to operate the Comilog plant and the process still continues.

Separately, Gabon is also looking its rare earth production. Maboumine, a subsidiary of Comilog is doing a study for a pilot plant to be built near the site and if the project proves commercially viable is expected to start work in 2016.

S Africa plays increasing role in exporting ferro-alloy technologyMetal-Pages 01/06/2015

South Africa is playing an increasing role in technology for ferro-alloy production and has turned its role from being on the receiving end of new technologies to exporting them to countries like China, Malaysia and Latin America, said Nic Barcza, executive consultant at South Africa’s state-owned minerals research facility Mintek.

Speaking to delegates at the Infacon Ferro-alloy Conference, Barcza said that from the seventies until recently the various technologies for the treatment of ferro-chrome have been


brought into South Africa but more recently the trend has changed and South Africa has started exported technology to other countries. Mintek has been at the forefront of this trend in terms of furnace control and ferro-alloy producer Metix took the lead in furnace technology.

South Africa is the world’s largest producer of ferro-chrome and is also a key supplier of chromite ore to China. In ferro-manganese its role as a global player is much smaller than in ferro-chrome but it is a dominant supplier of manganese ore, most of which also goes to China.

“South Africa has grown to that level of maturity where it has learned enough about technology so that it is able to provide technology to others,” Barcza said. “We started exporting manganese technologies to the east and this will hopefully grow,” he added.

For ferro-nickel, in the space of the last twenty years capacity for furnaces has gone from 50MW to over 90MW in 2010 but it is question if the industry will be able to sustain it, said Rodney Jones, specialist consultant at Mintek.

South Africa does not produce any ferro-nickel but it produces refined nickel as a by-product of its precious metal production. The main reason for the country to focus on ferro-nickel production technology is the success of the direct current applications it has been using in the production of ferro-chrome.

“What is required is a step change – this is the driver behind the direct current arc furnace technology for smelting particularly of fine ores and this is something Mintek has been working on actively over the years,” Jones added.

Mintek has successfully exported its ferro-nickel technology to producers in Russia and New Caledonia, the later on one of the largest new global production sites, the Koniambo smelter.

S Africa’s Eskom flags respite from power load-sheddingMetal-Pages 01/06/2015

June has got off to a good start for South Africa’s mining and metals sector with power utility Eskom saying it does not have any plans to implement rolling outages this week.

Ironically, the often lambasted Medupi power station is the main reason for this good state of affairs as it has just successfully added its first 800MW of electricity to the struggling national grid. Unit six is the first of Medupi’s six units to be hooked up to the grid, the others following over the next five to six years.Also good news is that Eskom is not planning any major maintenance during the southern hemisphere winter – June to August – and will only be doing minor maintenance on its ageing fleet of coal-fired power stations. Depending on the severity of the winter, this could mean that power outages will be the exception rather than the rule, a welcome change from the experience of recent months.

While many mining and metals companies reducing are gradually their reliance on the national grid, they are still largely dependent on Eskom, which has been in regular load-shedding mode since November last year.

The spotlight now falls on the National Energy Regulator of South Africa which will towards the end of this month decide on whether or not to grant Eskom a further 12.6pc tariff increase to take its price hike for the 2015/16 year to 25.3pc.

Anglo American in leadership changes to oversee S Africa operationsMetal-Pages 28/05/2015 Change at the top


Global resources group Anglo American Plc has announced major leadership changes at its South African operations which produce a wide range of commodities including platinum group metals, iron ore, coal, manganese and diamonds.

In a statement, the group said its CEO, Mark Cutifani, will take over from Michael Spicer as Chairman of Anglo American South Africa (AASA). Norman Mbazima, CEO of subsidiary Kumba Iron Ore, will assume the role of Deputy Chairman of AASA, fulfilling the fiduciary duties of the AASA Board whilst continuing to lead the Kumba business.

Anglo American also said it has appointed Andile Sangqu to the newly established role of Executive Head of AASA.

“In light of South Africa’s strategic importance to Anglo American, this reorganisation of the Board of Anglo American South Africa is expected to bring greater effectiveness and alignment across the Group’s diversified mining businesses in South Africa,” the statement said.

“As Chairman, a key part of my role will be to reinforce our commitment as a development partner to all of our stakeholders in South Africa and to support the SA leadership team in building and maintaining stakeholders’ trust and confidence in the Group,” said London-based Cutifani.

AMERICAS back to index

US SiMn market stabilises losses on end-user supportMetal-Pages 05/06/2015 Stemming losses?US silico-manganese spot prices have been steady in the past week, stabilising losses as underlying consumption in construction is firm despite very quiet demand on the spot market. Dealers said US silico-manganese producer has delayed restarting its idled furnace that was shut for maintenance and upgrades for 10 weeks in February. The furnace was to be restarted a few weeks ago. The West Virginia plant has the annual production capacity to produce about 105,000t of silico-manganese with all of its furnaces running. The US market for silico-manganese is about 400,000t/yr, with Felman representing about a quarter of that business. Felman restarted operations last September after shutting all production in June 2013, citing increasing production costs and weak market conditions. But there are weak spots in consumption, such as tube and pipe steel-making where imports have been strong in recent months due to the strengthening dollar. A stronger dollar makes it cheaper for currency holders to import goods. That trend in steel imports has resulted in US steel production cuts and shuttered plants this year. But the US steel industry has complained to trade authorities in Washington and counter-measures are expected. Silico-manganese is used mostly in steel production as a source of both silicon and manganese, and sometimes as an alloying agent in the production of iron castings. It is used in long steel products such as rebar and wire mesh for use in the construction industry. US construction spending surged in April 2015 to its highest level in almost 6-1/2 years as outlays increased broadly, pointing to some pockets of strength in the domestic economy.


Construction spending increased 2.2pc to an annual rate of $1tn, the highest level since November 2008, the Commerce Department said this week. The percent increase was the biggest since May 2012.

Brazil’s manganese ore exports rise in MayMetal Bulletin 04/06/2015

Brazil’s manganese ore exports rose in May against both April and the same period in 2014, according to the country’s foreign trade ministry, MDIC.

Manganese ore exports hit 141,527 tonnes in May, up 63% compared with April and up 5% compared with May 2014.

Revenues for May were down year-on-year despite the increase in volumes, due to a 30% drop in manganese ore prices this year. Revenues for May 2015 reached $11.47 million on a fob basis, compared with $7.9 million in April and $14.43 million in May 2014.

Total manganese ore exports from January to May hit 575,827 tonnes, generating $55.66 million in revenue, fob. In the same period of 2014, exports reached 568,459 tonnes, worth $71.58 in revenue, fob.

Brazil’s manganese ore exports to Argentina rose to 97,367 tonnes in May 2015, up from 15,544 tonnes in May 2014.

Brazil did not export any manganese ore to China in May 2015, but had exported 75,597 tonnes in May 2014.

It exported 44,000 tonnes of manganese ore to Russia in May 2015 but exported none in May 2014.

Brazil foundry output down 10.2pc in AprilMetal-Pages 04/06/2015

Brazilian foundry production fell 10.2pc in April to 216,622t from 241,217t a year earlier, figures published by industry body ABIFA show. Output was 9.8pc down on the 240,182t produced in March.

In the first four months of 2015 production was down 7.2pc against the same period last year at 874,545t. Brazilian foundry production shrank by a worse than forecast 10.9pc in 2014 to 2.74mn t.

Vehicle manufacturers in Brazil, which account for 58pc of the foundry sector's business, continue to face tough times. Falling sales and output, layoffs and reductions in profits have replaced years of stunning growth and record sales.

Demand for foundry products containing magnesium was one of the few bright spots in 2014, increasing 6.6pc against the previous 12 months to 4,933t, although the picture has been mixed so far this year.

April production of foundry products containing magnesium was up 3.5pc on the same month last year at 419t, but 0.5pc or 2t lower against March. From January to April production was 1.1pc or 17t higher than for the opening four months of 2014 at 1,626t.

Brazil's foundry industry consumes ferro-alloys such as ferro-manganese, ferro-silicon and ferro-molybdenum, as well as magnesium.

The auto industry slump has left Brazilian foundry producers crossing fingers for stable production in 2015.


US Mn alloys imports mostly up in January 2015Metal-Pages 02/06/2015 Imports increaseThe US imported 43,300t of silico-manganese and about 27,600t of ferro-manganese in January this year, according to data from the United States Geological Survey (USGS). In terms of ferro-manganese, the country imported 19,500t of high carbon material, with 6,520t of medium carbon alloy and 1,620t of low carbon alloy. Low carbon ferro-manganese was the only manganese import to the US that fell in January 2015, year-on-year. The US imported some 48,900t of manganese ore that month, and 1,860t of manganese flake. Imports jump from 2014In comparison, the US imported 31,800t of silico-manganese in January 2014. It imported 10,400t of ferro-manganese that month, with 7,620t of high carbon material, 641t of medium carbon and 1,990t of low carbon alloy. It imported 12,000t of manganese ore in January this year, and 1,730t of manganese flake, according to USGS data. Ore consumptionAccording to the USGS, data for January 2015 showed that domestic consumption of manganese ore containing more than 20pc manganese, exclusive of that consumed at iron and steel plants, was 65,900t. That was a slight increase compared with the amount consumed in December 2014 (65,300 t), and 76pc more than that consumed in January 2014 (37,500 t). That year-on-year increase was mostly due to resumed production at US manganese alloy producer Felman Production's silicomanganese plant in West Virginia in July last year. Industry ore stocks at the end of January 2015 were reckoned to be 161,000t, which was up slightly on 158,000t at the end of December 2014.

GENERAL INFORMATION back to index

MANGANESE ORE INDEX: High grade prices surrender gainsMetal Bulletin 08/06/2015

High grade manganese ore prices retraced recent gains on Friday June 5 in thin trading.

Metal Bulletin’s 44% manganese ore index fell 4 cents.

The price had been rising since May 15 when it hit the lowest price recorded since the launch of the index in 2012.

Most market participants have described both markets as fairly stable over the past few weeks.

Recent import and export figures show Brazil did not export any manganese ore to China in May 2015, having exported 75,597 tonnes in May 2014.

China’s manganese ore imports rose 14.2% year-on-year in April to 1.4 million tonnes, according to the country’s import statistics, released in late May.

April’s import figure was also up 1.9% on March 2015.


WEEK IN REVIEW: Summer slowdown comes earlyMetal-Pages 05/06/2015 Uneven performancePublic holidays in parts of Europe slowed the flow of business this week, and some markets are already experiencing an early summer downturn.

Prices for most minor metals and ferro-alloys were unmoved in European and US markets and some have seen lower numbers as traders sought to offload stocks. In others, sellers are waiting for consumers to return to the market later in June to replenish inventories of feedstocks for the summer, and are reluctant to lower prices.

Macroeconomic factors meanwhile point to a slower summer for the metal markets as growth in global manufacturing remains fragile, impacted by the slowdown in China and reduced export competitiveness in the US.

In May, global manufacturing PMI, a key measure of performance, posted only a slight improvement at 51.2 against April’s 21 month low of 51.0, according to a JPMorgan survey. A PMI reading above 50 indicates growth, while below 50 indicates contraction, and the May reading represented the second lowest monthly rate of growth in global manufacturing in nearly two years.

“The disappointing performance in May reflected the first, albeit only marginal, decline in worldwide exports since June 2013, indicating a stalling of global trade flows,” said UK-based economic consultancy Markit, which compiled the survey.

Manufacturing performance varied across regions, however May indicators showed growth slowing in the US and the UK, which have outperformed most other countries to date, while manufacturing activity in the Eurozone is picking up, albeit from a low level. US manufacturers are blaming the strong dollar for hampering their export business.

But it is the persistent weakness in Asian economies and in the main emerging markets that is dictating the global trend. Manufacturing in China, Brazil and Russia is in contraction territory, and in May only India and Vietnam bucked the downward trend in Asia. Japan saw only meagre growth in manufacturing and near stagnant exports in May, according to the survey.

The evidence of the weak manufacturing and regional economic growth can be seen in the slowdown in recent weeks in demand for minor metals, particularly those such as indium and rare earths that go into electronic manufacturing tied to consumer markets. Downward pressure on prices in Asian markets is also seeing prices for most metals stay flat or weaken in Europe and North America in late May-early June.

US silico-manganese spot prices have been steady in the past week, stabilising losses as underlying consumption in construction is firm despite very quiet demand on the spot market.

The market was last at an average below 50 cents/lb in September 2013. Dealers said a US silico-manganese producer has delayed restarting its idled furnace that was shut for maintenance and upgrades for 10 weeks in February. The furnace was to be restarted a few weeks ago.

Next Infacon to be held in South Africa in 2018 with new chairman of ICFMetal-Pages 04/06/2015

Nic Barzca is retiring as the chairman of the International Committee on Ferroalloys (ICF) and handing over the helm to Rodney Jones, his colleagues from South Africa’s national institute of metallurgy Mintek.


The committee has decided to hold the congresses on ferro-alloys on a three-yearly rather than a bi-annual basis as until now and to hold the next International Congress on Ferro Alloys (INFACON) in South Africa in 2018.

The congress is typically held in major ferro-alloy producing countries and in the past has taken place in Kazakhstan, South Africa, Turkey and number of other countries.

The outgoing chairman Barcza, an executive consultant at Mintek, is a veteran of the ferro-alloy industry who has been involved in a large number of major ferro-alloy projects across the globe and who remains active in the industry.

Jones, a specialist consultant at the Pyrometallurgical Division at Mintek, has been with the division since 1985. He is also a Fellow and President Elect of the Southern African Institute of Mining and Metallurgyand was involved in the invention of the ConRoast process which has recently been used in the smelting of over 50,000t of materials containing platinum group metals using direct current arc technology.

Ferro-alloy prices trending lower in early JuneMetal Bulletin Research 03/06/2015

US ferro-vanadium prices continued to decline this week, despite hopes that the Evraz Highveld situation will support prices. Austria’s Treibacher has stated that it is still able to meet its existing commitments on ferro-vanadium sales, but is no longer active in the spot market. Treibacher also confirmed that the company will reduce its ferro-vanadium production temporarily in response to the business rescue proceedings at Evraz Highveld.

European silico-manganese prices fell this week, with rumours of sales completed below this level and indicative of the direction of future pricing. Aggressive negotiating by a major consumer has helped press prices lower in Europe, together with continuing disappointing demand, weak ore pricing, and ample supply of both manganese ore and alloys. US silico-manganese prices are steady this week. In light of price stagnation, Felman is keeping its second silico-manganese furnace, idled in February, offline given current market conditions. With prices stagnating, there is clearly no need for additional production in the market. Elsewhere, with silico-manganese output from southern Chinese producers poised to rise with the onset of the rainy season, we expect prices are more likely to fall than gain in the near term. Meanwhile, Chinese steelmakers cut their May high-carbon ferro-manganese purchase prices by RMB400/tonne.

MBR outlook Ferro-alloy markets are presenting considerably more downside than upside at present. Alloy supply is poised to rise for seasonal reasons, while demand continues to disappoint, and steelmakers press for lower prices in order to preserve margins. As the seasonally quieter northern hemisphere summer season approaches, characterised by manufacturing and industrial shutdowns, we expect ferro-alloy prices to continue to trend stable to lower in the near term.

TAPPED IN – the ores and alloys blog: How one canny consumer shook up the silico-manganese marketMetal Bulletin 01/06/2015

There’s very little fresh spot demand in the European silico-manganese market today.

But market participants know this, which is why they had time to spend much of the last week of May debating the identity of a "cheap seller" of a parcel of material, after a shrewd consumer reportedly ran rings round the lot of them.

Here is an unconfirmed version of how things panned out, as relayed to Metal Bulletin by sources.


A consumer went into the market for about 5,000 tonnes of silico-manganese last week and received offers from at least three significant players on the supplier side.

A normal event with extraordinary results.

The consumer played two large suppliers off against each other as he chased their offer prices lower.

One of the suppliers, needing the business, reluctantly sold at what he considered to be an unattractive but realistic price, roughly in line with Metal Bulletin’s quotation.

The second supplier, believing he had lost the business to the first supplier, panicked. He mistook the first supplier for a much larger company and, expecting an imminent price collapse, inadvertently undercut his rival by as much as €60 per tonne, parting with the material at a price well below Metal Bulletin’s price quotation.

The consumer accepted both prices, splitting the business between the two suppliers.

The second supplier and a third supplier, whose higher offer price had been rejected, were led to the conclusion that the first supplier had driven the price down.

(For the purposes of retelling this story, suppliers include traders with material).

A few days later, Metal Bulletin received a call from a trader, who relayed the whole story, adding that he was not the one who had made the cheap sale, but wanted to explain to Metal Bulletin why he thought the price quotation had moved down at the end of the week.

He said most people believed the first supplier was the one who had sold at the cheapest price, but he knew it was the second.

Two other parties later named the first supplier to Metal Bulletin as the alleged cheap seller. But, when furnished with additional information, these sources began to waver in their beliefs.

This deal was not actually reflected in Metal Bulletin’s quotation. The price moved down for entirely different reasons; four other sources had, in fact, reported more reliable prices that brought the quotation somewhere between its previous range and the alleged cheap price, resulting in a range of €800-860 per tonne on Friday May 22; a seven-month low.

But this canny consumer’s purchase remains the talk of the market.

So far, no party has confirmed the alleged cheap price to Metal Bulletin first-hand, but the saga generated so much debate that it resulted in what Metal Bulletin believes is a record number of silico-manganese data points in a two-day period.

Needless to say, silico-manganese prices have just taken yet another hit.

Metal Bulletin’s quotation for silico-manganese, delivered in Europe, dropped on Friday May 29.

Silico-manganese hits 17-month low on poor demandMetal Bulletin 01/06/2015

Silico-manganese prices dipped to a 17-month low on Friday May 29 as producers cut offers to secure scarce consumer demand.

In the week beginning May 25, deals, offers and price assessments were reported all the way across the trading range.


There have been rumours in the past 10 days of business concluded at lower levels than Metal Bulletin’s new range, but, as yet, no such deals have been confirmed.

Silico-manganese prices are under pressure due to poor spot demand, low manganese ore prices and plenty of ore and alloy availability.

The International Manganese Institute said last week that poor demand is offsetting production cuts, which had previously been cited as being supportive for prices.

WEEK IN REVIEW: US growth reverse puts damper on metals marketsMetal-Pages 29/05/2015

Metals markets shuddered today as US growth went into reverse as falling exports and rising imports took their toll. A widening deficit points to future difficulties amid a stronger dollar that will most likely continue as expectations are for a rise in interest rates this year.

US gross domestic product contracted at a 0.7pc seasonally adjusted annual rate in the initial months of this year in a revision, a figure wide of the mark of the forecast 0.2pc growth. Commodity markets have been hampered by the strong dollar recently and comments made by the US Federal Reserve recently point to higher rates this year. But the surprise US growth revision might put a damper on this expectation.

Elsewhere global steel supply and demand will likely contract in 2015 as a result of weakening steel demand and oversupply in some of the world's main consuming markets, steel consultancy MEPS forecasts. The modest decline is based on weaker demand in the Chinese, US, Japanese, Russian and Brazilian markets.

At the same time MEPS predicts that annual average steel consumption in most regions of the world will increase steadily in the future, but increases will struggle to match those seen since 2010. Global steel production was down 1.7pc at 536.4mn t in the first four months of 2015 compared with the same period last year, figures from worldwide steel producers association worldsteel show.

Output in China, which has underpinned strong growth in the past decade, was down 1.3pc at 270mn t from January to April. Figures are monitored closely by ferro-alloys producers whose own production may be directly affected by global steel demand.

Manganese spot flake prices in Europe are looking steady heading into early June, with the market extending stability from this month on expected renewed demand and supply cuts in the China, the biggest producer in the world. The European price range has widened amid illiquid trading in recent days, although the market is seen strengthening next month if stronger demand materialises against Chinese production cuts. But market sentiment is cautious about price forecasts as Chinese production can be restarted and quickly cap price increases, sources said. The market is off about a quarter since Q3 last year.

Selenium prices were assessed flat, with little trading activity reported, and similarly tellurium was unchanged. But the tellurium market in China moved lower after stabilising for two weeks, shedding Yn10/kg, as the market remained fundamentally oversupplied and sellers are offering lower prices to shift inventory.

MANGANESE ORE INDEX: High grade prices increase for second week runningMetal Bulletin 29/05/2015

High grade manganese ore prices rose on Friday May 29 for the second time in two weeks, as low grade prices held.

Metal Bulletin’s 44% manganese ore index, cif Tianjin rose 2 cents.


Metal Bulletin’s 37% manganese ore index, fob Port Elizabeth rolled over.

Overall, market participants reported prices in line with those they had submitted in the past three weeks, suggesting the market is largely stable.

Metal Bulletin reported on May 22 that China’s manganese imports had risen in April.

This, along with higher South African manganese ore exports and a drop in port stocks in China, shows restocking is probably taking place in China, one market source said, adding that he did not think actual ore consumption was stronger.

"There’s definitely something interesting going on. If I look at South African exports for January to May, more material is being sent to China but stocks there have decreased," the source said.

"I think manganese alloy smelters are buying for their plants – restocking, rather than buying hand to mouth as they had been previously. I doubt it’s an increase in consumption," he added.

Manganese markets see downturn in Feb - IMnIMetal-Pages 29/05/2015 Weaker 2015Oversupply and high stock levels are weighing on world manganese ore prices, according to data this week from the International Manganese Institute (IMnI). World ore supply increased 3.8pc, year-on-year, to 4.82mn t in February, as demand increased at a more modest 1.2pc to 4.2mn t, resulting in a world surplus of more than 600,000t, the data showed. Mine capacity utilisation edged up to 75pc, from 73pc, year-on-year. Benchmark manganese ore has fallen 30pc since the start of 2015 due to weak demand and high stock levels at ports in China. Industry sources reckon the price of ore, which rode the construction and property boom in China, may be low key through 2020 when the market may recover to its average last year. In the past couple of years the 19mn t/yr manganese market has been struggling to process a supply glut after production jumped when prices hit a multi-year peak before the financial crash of 2008. Industry forecasts reckon the market was oversupplied some 350,000t of contained manganese last year, after almost 850,000t of surplus in 2013. However, a deficit of more than 360,000t has been forecast this year. Australian and South Africa are among the biggest manganese ore suppliers, along with China. Steel But demand from steelmakers failed to show any appreciable upturn at the start of the current quarter, the IMnI data showed. World liquid steel production has been dropping in the traditionally strong month of April, with 137.4mn t produced last month, off 1.3pc year-on-year, and down 1.9pc from March 2015. That was due to sluggish steel demand in advanced economies such as North America, Europe and Japan, the data showed, as well as market oversupply in Asia, notably China.


Manganese alloys Consequently, slowing steel production and falling manganese ore prices negatively impacted the silico-manganese market in February, the IMnI said. That month, world silico-manganese production was 755,000t, down 19pc year-on-year, while world demand was 749,000t, off 23pc year-on-year. World silico-manganese production capacity utilisation in February was down to 33pc, from 36pc, year-on-year. Silico-manganese production cuts were particularly acute in China where slowing steel demand combined with high electricity tariffs in the south of the country, prompting remedial action from producers amid ample stock levels, according to the IMnI. High carbon ferro-manganese production increased in Africa and CIS countries, although that was met with slowing demand from the steel sector, particularly in China, the States and Europe. In February this year world high carbon ferro-manganese production was 388,000t, up 5pc year-on-year. Demand was 400,000t, up 1.5pc year-on-year. The production capacity utilisation ratio was 64pc, from 61pc, year-on-year. Demand for refined ferro-manganese dropped in Asia and Europe in February, also due to slower steel demand. World refined ferro-manganese production was 145,000t, off 1pc, year-on-year, while demand was 149,000t, down 3pc, year-on-year, IMnI data showed. Production capacity utilisation ratio was steady at 80pc, year-on-year.

EUROPEAN MORNING BRIEF: Key stories on May 29Metal Bulletin – 29/05/2015

Good morning from Metal Bulletin’s offices in Asia, bringing the latest news and pricing stories affecting the metals market.

Traders are keenly watching the spreads on aluminium, which have stablised somewhat after weeks of volatility, and the copper prices were up in Asian trading session. Click here to see our Rolling LME/SHFE price report for 28/05.

Glencore has signed $15.25bn revolving credit facilities.

Anheuser-Busch InBev is considering a $170-million investment to expand production at its aluminium can-making operation in Jacksonville, Florida, USA.

The impact of silico-manganese production cuts on global supply has been offset by falling demand from the steel sector, according to recent figures from the International Manganese Institute.Global silico-manganese production fell 19% year-on-year in February to 755,000 tonnes, as demand fell 23% to 749,000 tonnes.

ASIAN MORNING BRIEF: News and price moves on May 29Metal Bulletin – 29/05/2015

Key news and price moves to get you off to a good start during the Asian morning on May 29.

Copper prices on the London Metal Exchange edged up yesterday, as the strength of the US dollar eased slightly on hints of Greece moving closer to finalising a deal with its creditors.


In the physical markets, premiums for imported nickel have risen quickly in China, amid growing hopes for approval of foreign brands for settlement against Shanghai Futures Exchange nickel contract.

But an unfavourable arbitrage and tepid demand have driven down zinc premiums in Asia. More here.

Ferro-tungsten prices lost more than $1 per kg on Wednesday as a consumer tender flushed out cheap offers. Check out our noble alloys wrap, here.

In company news, Austrian ferro-alloys producer Treibacher has said it is still able to meet its existing commitments on ferro-vanadium sales.

And Evraz Highveld has settled the legal dispute with Sasfin Bank over the release of its debtors’ book, and is still planning to take action in relation to the penalties the bank allegedly levied on it. But what did we learn from the initial application from Evraz Highveld’s business rescue practitioners (BRPs) to the South African High Court in relation to the debtors’ book? Claire Hack considers this in Tapped In, Metal Bulletin’s new ores and alloys blog.

And this week in minor metals, adequate supply and low buying interest kept most prices at the same levels on Wednesday as they finished last week, although some metals bucked the trend. Click here for our midweek update.

The International Manganese Institute shared its latest supply demand figures for various markets. The data explains why manganese ore prices remain so weak and confirms our earlier explanations as to why silico-manganese shutdowns are not resulting in higher prices.

SiMn shutdowns offset by weak demand – IMnIMetal Bulletin – 28/05/2015

The impact of silico-manganese production cuts on global supply has been offset by falling demand from the steel sector, according to recent figures from the International Manganese Institute.

Global silico-manganese production fell 19% year-on-year in February to 755,000 tonnes, as demand fell 23% to 749,000 tonnes.

In January, global supply was 812,000 tonnes and demand was 842,000 tonnes.

February’s monthly surplus narrowed to 6,000 tonnes from 29,600 tonnes in January but the lack of fresh spot demand and high inventories helps to explain why the tighter supply has not been felt – and why prices have just weakened to a seven-month low of €800-860 per tonne.

Global production capacity utilisation fell 3 percentage points year-on-year to 33% in February, IMnI’s figures also revealed.

"Silico-manganese production dropped in February 2015, particularly in China due to a slowing demand from the steel sector, combined with high electricity tariffs in the south of the country, and ample stocks," the IMnI said. "Silico-manganese production also declined in Western Europe."

Asia and Oceania’s supply and demand figures each fell 27% to 537,000 tonnes and 525,000 tonnes respectively.

European supply fell 8% to 34,000 tonnes as demand fell 36% to 61,000 tonnes.


Production in the Americas rose 13% year-on-year, as Brazil’s power-related production shutdowns were offset by increased supply from other countries in the region. Demand from the Americas fell 32% year-on-year.

The announcement that leading Brazilian producer Vale was stopping production did not come until April, but it also announced that its first quarter production had been affected by shutdowns.

A decline in Brazil’s production is expected to be reflected in figures for March and April.

Vale announced in February that its 2014 ferro-alloys production had fallen slightly compared with 2013.

Supply from CIS countries rose 23% to 126,000 tonnes as demand rose 40% to 92,000 tonnes.

Supply from Africa and the Middle East rose 4% to 27,000 tonnes as demand in the region fell 22.9% to 28,000 tonnes.

Manganese ore prices knocked by oversupply, ample stocks – IMnIMetal Bulletin – 28/05/2015

Manganese ore prices are still being weighed down by oversupply and high inventories, the International Manganese Institute (IMnI) said as it released market supply and demand figures for February.

Global supply increased 3.8% year-on-year to 4.82 million tonnes in February, as demand improved just 1.2% to 4.2 million tonnes, leaving a global surplus of about 600,000 tonnes.

"Manganese ore production increased in February, while demand improved modestly," the institute said. "Oversupply and ample inventories keep adding pressure on prices."

Manganese ore production capacity utilisation rose 2 percentage points to 75% in February 2015 compared with the same month in 2014, the IMnI also revealed.

Demand from Asia and Oceania, which includes China, the largest consumer of manganese, fell 8% year-on-year to 3.3 million tonnes in February. Supply from Asia and Oceania fell 1% year-on-year to 2.7 million tonnes. Supply from Africa and the Middle East rose 3% year-on-year to 1.6 million tonnes, as demand from the region fell 32% to 62,000 tonnes.

European supply fell 49% year-on-year to 17,000 tonnes as demand rose 85% to 227,000 tonnes.

Supply and demand from CIS countries both more than doubled to 207,000 tonnes and 461,000 tonnes respectively.

Supply from the Americas rose 34% to 238,000 tonnes as demand for the same region rose 24% to 183,000 tonnes.

STEEL NEWS back to index

New steels will change the demand picture for ferro-alloysMetal-Pages 05/06/2015 New steels


The ferro-alloy industry is on a verge of a major change as big steel makers are developing new types of steel which will require different purities of ferro-alloys, pure minerals and compounds, delegates at the Infacon ferro-alloy conference were told.

“We are on the verge of developing a whole new range of steels which will change the ferro-alloys market. Major companies are working on new steels which will still use the same alloys as now but in different ratios,” said Lev Medovar from the Paton Electric Welding Institute of the National Science Academy of Ukraine.

Some of the key industries generating demand for new and specialised type of steels are the aerospace, transportation and energy industries, said Nic Barzca, executive consultant at South Africa’s minerals research facility Mintek.

One of the major trends is the use of much lighter weight steels for the car industry. Here Korean steel maker Posco is working on new plastic and lightweight steel which is expected to be in use in car production within two years. Posco’s new steel will include 10pc of aluminium, 15pc of manganese, 0.8pc of chrome and 5pc of nickel.

Sumitomo and Nippon Steel are also collaborating on a similar project.

Super-alloys are another area of fast demand growth with the power generation industry being one of the key drivers. “At present power turbines have to withstand steam temperatures of 700C. In two years’ time turbines will be built with steam at 740C and they will be built with supper-alloys with high content of nickel and cobalt,” Medovar said.

Other fast growing types of steel include high nitrogen steel, HTUFF steel which stands for high toughness ultra-fine particles, and high boron steel, the later being used to line the inside of nuclear power plants.

The companies able to quickly and easily change the ratio or the composition of the alloys they are producing will best positioned to adopt to this new demand from the steel industry, said Barcza. But he pointed out that major industries like car manufacturers take about five years to test new products which will give both steel makers and ferro-alloy makers time to adjust their production to new requirements.

The trend is also for more alloying, micro-alloying and nano-alloying, particularly in countries like Japan and those type of alloys will require not only traditional ferro-alloys but also pure minerals or compounds and more complex minerals.

In terms of demand in traditional steel making Medovar sees the market expanding at a slow but steady rate of 3pc of year. These numbers are in line with global electricity consumption data which tends to corresponds with steel manufacturing growth.

US steel market shows signs of pickupMetal-Pages 04/06/2015

Recent deals for hot rolled coil steel in the US have seen increases, while buyers report delivery lead times are now well into June and suppliers are pushing for further rises beyond then, global steel consultancy MEPS reports.

But at the same time hot rolled plate prices continue to slip, although mills report firmer demand in recent weeks due to the running down of inventories and customer requirements.

Falling prices for cold rolled coil have halted and buyers are less keen to purchase from overseas, while authorities mull trade action.

US auto demand is stable at high levels. Demand from the construction sector continues to improve, but remains well below potential. Appliance manufacturers are seeing flat demand with coated steel prices moving up after hitting the bottom in late April, MEPS said.


Prices for imports of rebar, which may contain vanadium are increasing, but domestic prices have fallen, while demand from the residential construction market is slow to improve.

World steel prices up in May for first time in 12 months - MEPSMetal-Pages 01/06/2015 Mixed fortunesWorld steel prices are up in May for the first time in 12 months, although markets are diverging between a recovering or stabilising countries in the West. Asian markets have been more fragile due to weak fundamentals, according to the latest report from international steel consultancy MEPS. In the US, strip mill product prices have firmed after recent price jump announcements from all the major producers, it said. Steel mills appear to be disciplined about the implementation of the increase, while delivery lead times are extending slowly and the threat of trade cases against foreign exporters to the US has cautioned buyers about booking imports. US distributors have been running down their plentiful stock levels. Canadian steel mill business activity, however, has been poor, with short delivery lead times. Still, import volumes have been falling as domestic prices get more competitive, and market dealers reckon they have hit a floor. Canadian service centre sales are steady, although sluggish for the time of year. In Western Europe, prices for flat steel, a consumer of ferro-manganese, are generally unchanged, MEPS said. Business activity is picking up, albeit slowly, as the economic climate strengthens. Some steelmakers have decent order books. However, their raw material costs are low, giving them no reason to push up their finished steel prices. Many third country (non-EU) producers have been cutting their flat product offer prices and while EU importers are starting to show more buying interest, any material will be arriving in the seasonal slowdown. In Poland, strip mill product prices are stable, MEPS said. Buyers reckon that considerable price increases are possible at present as while consumption is reasonable, imports are accounting for a big chunk of the market. Czech/Slovak deal prices have softened slightly despite recovering domestic economies. Market sentiment in the Czech Republic is up due to the weakness of the domestic currency, cheap energy and recovering domestic demand. There is also less competition from Ukrainian steel mills as their production has been curtailed in the strife-torn country. Asia strugglesCheap iron ore has been undermining steel market prices in China, MEPS said. Demand from the property market, car sector, shipbuilding and appliances is weakening, while the People’s Bank of China recently made its third interest rate cut in six months to support the economy. June is typically a slow season for the Chinese steel sector. In Japan, inventories of flat rolled products are in surplus. Several large steelmakers will cut production, MEPS said, in the current quarter to try to reduce inventories. In March, shipments of carbon steel finished products were at their highest level for two years, but the increase was due to firmer export volumes, while domestic deliveries fell. Although the rate of export business has been brisk, export prices have been dropping.


South Korean steelmakers are worried about the high volumes of low-cost Chinese imports, even though steel imports shrank more than 8pc in April, year-on-year. The main reasons for the contraction were slumping demand and climbing inventories, while the South Korean economy has been sluggish. In addition, recent Russian export offers to the Southeast Asian market have disrupted South Korean exports to that area of the continent.

Weak demand undermines steel growth in emerging marketsMetal-Pages 01/06/2015 Slow businessBrazilian domestic steel distributors have started to press for additional price concessions from their domestic suppliers, as one sign of a struggling growth in emerging markets across the world, according to international steel consultancy MEPS. The Instituto Aço Brasil (IABr) has reported that finished steel sales in the country in April this year totalled 1.51mn t – down 22pc - from the month before. In Russia, tough trading persists, with domestic traders planning to postpone purchases until the longer term demand outlook is clearer. Domestic steelmakers have delayed releasing their preliminary June basis quotations for both flat and long finished steel products. India’s Ministry of Steel has proposed imposing stricter quality controls for semi-finished and finished steel products imported into the country. If the new measures are formally approved, materials covered by the new codes will have to be certified by the Bureau of Indian Standards (BIS), MEPS said. The steel market has been challenging in Ukraine, with May trading shortened due to the close proximity of the Easter and national holidays. In Turkey steelmakers have had mixed success in their efforts to get stronger price, while the firming dollar versus the domestic currency has impacted exports. Economic uncertainty has been unsettling business confidence in the United Arab Emirates, MEPS said, with domestic suppliers forecasting no notable price recovery in either the flat or long product in the near term. South African service centres are getting more pessimistic about the prospects for domestic steel consumption this year, as deliveries to downstream industries have been underperforming. Challenging business conditions persist in Mexico where domestic steelmakers are expected to shadow US prices in June.

Eurofer files complaint at EU on Italy steel aid Market distortionEuropean steel association Eurofer filed a formal complaint this week at the European Commission against what it said was illegal state aid for Italian steelmaker Ilva. Eurofer said that about €2bn ($2.2bn) allocated to Ilva by the Italian authorities is not compatible with European Union (EU) treaty and state aid regulations. It amounts to a form of distorted government intervention, similar to trader distortion. The German steel federation had already filed a complaint. Ilva makes long steel products, which use silico-manganese. The Italian government took full control of the Ilva plant, which has the biggest production capacity in Europe, in January this year and put it in extraordinary administration to save 16,000 jobs after a court had sequestered much of the factory on accusations that it failed to contain toxic emissions.


The plant is losing tens of millions of euros a month in a country where the steel sector is the second-biggest in Europe behind Germany. Ilva's Taranto site has been producing at well below its annual capacity of more than 11mn t since 2013. Separately, Eurofer said that fair steel trade competition on an EU, as well as international, level was key for a sustainable EU steel industry. Of the 75 metals, alloys and elements reported by Metal-Pages, fully 44pc are steel-dependent, either wholly or in considerable part. Another 25pc or so comprise markets that are at least partially dependent on the steel sector or intersect it in some way. Last year, EU steel demand increased 3.9pc, although much of that was fed on imports, according to Eurofer. Finished steel imports increased about 20pc last year, while deliveries from EU steelmakers saw an increase of only 2pc. This year, EU steel demand is expected to increases only 2pc and 2.5pc in 2016. The main risk is a persistent surge of steel imports into the EU, Eurofer said. Eurofer wants to accelerate complaint preparation and filing at EU level, shortening the time in which provisional measures can be imposed, and meaningful duty levels. Massive excess steel capacities have been fuelling unprecedented Chinese export surges, up to 93mn t, disrupting markets worldwide, it said.

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Europe Mn spot market climbs on short coveringMetal-Pages 08/06/2015

Short coveringManganese spot flake prices have strengthened in Europe in the past week due to short covering. They were also supported by rises in the Chinese market, the key supplier to Europe. There is material stockpiled in Rotterdam, although it seems much of that has already been stockpiled. There have also been reports of a major German steelmaker getting a deal in recent days to produce some 150,000t of pipe, which has prompted some short covering in manganese as the steelmaker will need more raw materials, such as manganese. Still, the price recovery in Europe may be short-lived as manganese flake for shipment due to arrive in six weeks is available from China. That may mean that spot prices may drift back once the current bout of short-covering has been done, and general spot market buying activity has been quiet this year so far, failing to bounce in the traditional busier second quarter.


In China, manganese prices have been increasing against stronger tender prices from key stainless steelmakers, as well as less manganese output. Last week, Baosteel, one of the biggest stainless steelmakers in China, released its tender prices for manganese flake, similar to current spot prices. Most smaller manganese producers without their own ore mines have either stopped or halved their production levels since mid-April, while major producers with mines started to cut production in early May as market prices dropped. Ningxia Tianyuan manganese, Tycoon Group, Changyang Hongxin Manganese and Wujiang Shiye Group, have all cut production and are doing early maintenance due to record low prices. Most producers usually start their equipment overhaul in August.

Mn flake price uptrend continues in ChinaMetal-Pages 08/06/2015

Chinese manganese prices have continued to increase on the back of higher tender prices from key stainless steelmakers and decreased output.

Last week, Baosteel, one of the biggest stainless steelmakers in China, released its tender prices for manganese flake, down RMB200/t from the previous tender price, but similar to current spot prices after deducting transportation fees and bank discount charges.

Most smaller producers without their own ore mines have halted production or halved output since the middle of April, while key producers with mines began to cut production at the beginning of May in the face of falling manganese prices.

Ningxia Tianyuan manganese, Tycoon Group, Changyang Hongxin Manganese and Wujiang Shiye Group, have all cut production and are carrying out maintenance due to record low prices, Most producers usually begin their equipment overhaul in August.

On the spot market, spot flake prices rose on Monday from last Friday, and producers are not eager to sell material in view of decreased output from key producers.

Spot prices for manganese flake 99.7pc have increased, RMB300/t higher than the last assessment on 4 June. Prices started to rebound in late May after two months of decline.

China manganese briquette exports down 13.09pc in April 2015Metal-Pages 05/06/2015

In April, China’s exports of wrought manganese (mostly in the form of briquette) were 3,175t, down 13.09pc from 3,653t in the same month of 2014, according to official customs data. From January to April 2015, China exported 12,759t of manganese briquettes in total, down 7.94pc of the same period of 13,860t in 2014.

In April, Chinese manganese briquette prices kept falling in line with declining domestic prices in an oversupplied market.

China Mn flake prices rise, key stainless steelmakers release tendersMetal-Pages 04/06/2015

Chinese manganese prices have continued to increase, and key stainless steelmakers have released their June tenders for manganese, supporting the current uptick in prices.

Baosteel, one of the biggest stainless steelmakers in China, has released its tender prices of manganese for June requirements, and the new tender prices are similar to current spot


prices after deducting transportation fees and the bank discount charges (banks cash the acceptance bills paid by steelmakers).

The tender price for manganese flake is down RMB200/t from previous tender price.

The tender price for manganese briquette 97pc is down RMB130/t from the previous tender price.

The tender price for manganese lump 97pc is down RMB250/t from the previous tender price.

Earlier this week, Shasteel has issued its tender price for manganese lump 97pc, the same as the price of the last purchase at the end of April. The purchase amount is 2,200t.

Metal-Pages last assessed spot prices for manganese flake 99.7pc at RMB200/t higher than last week. Prices started to rebound last week after two months of decline.

In line with increasing domestic prices, producers have raised export offers further.

European Mn market sees stronger price offers on ChinaMetal-Pages 02/06/2015 Price bounce?Manganese spot flake prices in Europe may be about to strengthen in the coming days after a flat week, as Chinese export offers seem set to strengthen amid domestic production cuts. For now, however, the current spot price range in Europe is nominal given the very low levels of business activity, something that may cap attempted stronger price increases in the near term, sources said. The odd deal has been reported at below the current spot price range, although most reckon any business will fall into the Metal-Pages latest assessed range. Some support has been garnered from a small increase in Chinese export prices, which have edged up a percent or so in recent days. That move in China has been prompted on domestic production cuts there. Prices hit an annual multi-year low in Europe in May 2006. Manganese lump and briquettes have been harder to source in Europe, with those premiums stronger than usual. At present, few importers are buying lump and briquettes, with most European supplies being flake. Demand from world steelmakers failed to show any appreciable upturn at the start of the current quarter, according to data this week from the International Manganese Institute (IMnI). World liquid steel production has been dropping in the traditionally strong month of April, with 137.4mn t produced last month, off 1.3pc year-on-year, and down 1.9pc from March 2015. That was due to sluggish steel demand in advanced economies such as North America, Europe and Japan, the data showed, as well as market oversupply in Asia, notably China. China ups offersChinese manganese prices have been edging up with stronger offer prices from producers amid decreased production. Major flake producers have cut or halted production for equipment maintenance. Most smaller producers without in-house ore mines have halted or halved production since mid-April this year, while bigger producers that do have such mines started to cut production from early May against weakening manganese prices.


In line with increasing domestic prices, producers have increased export offers. Some exporters have stopped making offers in expectation of stronger prices in the near term. However, European traders reported stronger price offers already this week from Chinese suppliers, although no firm deals have been done.

Chinese manganese flake prices edge up on lower outputMetal-Pages 02/06/2015

Chinese manganese prices have continued to edge up with higher offers from producers amid decreased output as key producers have cut output or halted production for equipment maintenance.

Most smaller producers without in-house ore mines halted production or halved output from the middle of April, while key producers with in-house mines began to cut production from the beginning of May in the face of continuously falling manganese prices.

Ningxia Tianyuan manganese, Tycoon Group, Changyang Hongxin manganese and Wujiang Shiye Group, all cut production to carry out maintenance due to record low prices, Most producers usually began their equipment overhaul in August.

Shasteel has issued its tender price for manganese lump 97pc, rolled over from its previous purchase at the end of April. The purchase amount is 2,200t.

Other key stainless steelmakers in China are likely to issue monthly purchase prices in the coming two days, which will provide a clearer price trend.

Metal-Pages last assessed spot prices for manganese flake 99.7pc on 2 June ,RMB100/t higher than last week. Prices started to rebound last week after two months of decline.

In line with increasing domestic prices, producers have raised export offers. Some traders have even stopped price quotations in expectation of higher prices in the near future.

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