Reflecting Expansion Of Steel Production By 30%, Mines Moved To Increased Their Output Of Mn-Ore
The quantities (on material base) of manganese ore produced by major manganese mines of the world in the first quarter (January - March) of 2010 and the monthly unit prices in the first 6 months of 2010 broken down by grades of manganese ore were as per the tables attached hereto.
The world output of crude steel in January - March quarter of 2010 increased by 29% to 342 million tons in comparison with that in the same quarter of 2009 and, accordingly, the global consumption of manganese ore in the first quarter of 2010 had recovered, which caused an increase in production of manganese ore.
Among six major manganese mines, Assmang released their settlement of accounts for 6 months but did not mention the quantity of manganese produced by them in that period. Accordingly, it is unable to grasp a whole picture in the world production of manganese ore but the total quantity of manganese ore produced by 5 mines in the first quarter of 2010 is estimated to be 3,200,000 tons, having increased by 94.6% compared to that (1,640,000 tons) in the same quarter of 2009.
Reflecting the Lehman shock emerged in autumn of 2008, the world economy in January - march quarter of 2009 shrunk to a serious extent and, consequently, the price of medium grade manganese ore for China (lumpy ore with Mn 44%) in that quarter had fallen to a level of US$5.50 - 5.60 per Mn 1% CIF China, which was an edge line to be payable for production cost. In view of this aspect, major manganese mines decided to reduce their production (supply) of manganese ore and endeavored to take back a balance on supply and demand of manganese ore. Accordingly, an extent to reduce their production of manganese ore was considerable.
The unit price of manganese ore for shipments in January - March quarter of 2010 had been on a basic tone to rise. China imported manganese ore on a scale of 2,831,000 tons in the first quarter of 2010, having doubled in comparison with that (1,016,000 tons) in the same quarter of 2009, and it is anticipated that China will import manganese ore on a scale of 10.00 million tons per annum in 2010, having exceeded largely that (9.61 million tons) imported by China in the preceding year of 2009. Reflecting this movement in the demand for manganese ore from China, major manganese mines had risen their price of manganese ore for China once in 1 to 2 months since January of 2010. As a matter of fact, the price of medium grade manganese ore for shipment to China in June has risen to US$8.70 per Mn 1% CIF in comparison with that (US$6.50) for January shipment.
For a reference, the recent quantities of manganese ore stocked at main discharging ports of China were informed as <> at Lianyuan port : 100,000 tons, <> at Zhanjiang port : 130,000 tons, <> at Fangcheng port : 270,000 tons, <> at Qinzhou port : 680,000 tons, <> at Tianjin port : 720,000 tons, <> at Beihai port : 200,000 tons and <> Total : 2,100,000 tons, corresponding to the scale imported by China for 2 months.
The scales of manganese ore produced by major mines in January - March quarter of 2010 were in the direction to recover. However, in comparison with the scales of manganese ore produced by major mines in 2008, BHP Billiton has recovered by 100% but Comilog (Eramet) has caught up on 93% and Vale on 67% respectively. |
