Manganese prices have risen substantially Manganese prices have risen significantly, with spot prices rising by more than 280% since November 2007. Ferro-manganese prices which had risen by c.95% during calendar 2007 have risen by another c.80% so far this year. Manganese is used primarily in the steelmaking process Manganese is primarily used in the making of steel, which accounts for approximately 85-90% of total manganese demand. Other than in steelmaking, manganese is also important for the chemicals industry in the production of lithium and dry cell batteries, fertilizers, pigments etc. Manganese demand and supply is expected to remain tight Manganese demand is almost entirely dependent on steel industry. China is the largest producer of (low grade) manganese ore followed by South Africa, Australia and Gabon. The top producers of high grade manganese are Australia, South Africa, Gabon and Brazil. We expect demand for manganese to rise in line with growing steel production. According to CRU, the balance for manganese ore is expected to remain in deficit until 2010 and return to surplus in 2011. The hunt for raw materials Just like other raw materials, manganese is also seeing consolidation as steel companies look to backward integrate. Some of the recent transactions include: Arcelor Mittal bought OFZ smelter in Slovakia and entered in a JV with Kalgadi manganese and smelter in South Africa; SAIL, a state run Indian steel producer signed an MOU with MOIL to secure its ferroalloys supplies.
MZN Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
