TEX reported that the world output of crude steel in January to March quarter of 2010 increased by 29% to 342 million tonnes 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 tonnes, having increased by 94.6% as compared to that of 1,640,000 tonnes in the same quarter of 2009.
Reflecting the Lehman shock emerged in autumn of 2008, the world economy in January to March quarter of 2009 shrunk to a serious extent and, consequently, the price of medium grade manganese ore for China in that quarter had fallen to a level of USD 5.50 to USD 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 to March quarter of 2010 had been on a basic tone to rise. China imported manganese ore on a scale of 2,831,000 tonnes in the first quarter of 2010, having doubled in comparison with that of 1,016,000 tonnes in the same quarter of 2009, and it is anticipated that China will import manganese ore on a scale of 10.00 million tonnes per annum in 2010, having exceeded largely that of 9.61 million tonnes 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 USD 8.70 per Mn 1% CIF in comparison with that of USD 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 tonnes, at Zhanjiang port: 130,000 tonnes, at Fangcheng port: 270,000 tonnes, at Qinzhou port: 680,000 tonnes, at Tianjin port: 720,000 tonnes, at Beihai port: 200,000 tonnes and Total: 2,100,000 tonnes, corresponding to the scale imported by China for 2 months.
The scales of manganese ore produced by major mines in January to 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. |
