manganese · web viewthe conference is devoted to analysis of the current situation and...

Manganese Matters n° 12 (Issued June 26, 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 26, 2015 - Issue n° 12

Article Index 3

IMnI UPCOMING MEETINGS

Statistics Committee MeetingTuesday, November 10Istanbul

OHES MeetingTuesday, November 10Istanbul

REACH Steering Committee MeetingTuesday, November 10Istanbul

Supervisory Board MeetingTuesday, November 10Istanbul

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’s 41st Annual Conference

IMnI’s 41st Annual Conference, which closed last week in Shanghai, attracted 154 delegates – down from last year but a respectable turnout given the challenges the industry is facing presently. Quality was not down, though, with the speakers and the technical tours living up to our professional standards

Structured around the theme “China at the Crossroads: Into the Mouth of the Dragon”, main speakers included: Simon Baptist, Chief Economist for The Economist Intelligence Unit, who presented a helicopter view of the Global Economy: Movers, Shakers & Strugglers: Who Will Lead the World Tomorrow?; James Kynge, Emerging Markets Editor Financial Times & Author of "China Shakes the World: The Rise of a Hungry Nation" who looked back at what China had become (and would become) since he had spoken at the 2002 Annual Conference in Shanghai; Gao Xu, Chief Economist & Head of Economic Research at China Everbright Securities Co., Ltd., who presented China's New Leadership Strategy & Economic Policies; Emmanuel Bonnaud, Senior Partner, Roland Berger Strategy Consultants, who gave an overview on Global Steel and followed by Graeme Train, Associate Director, Macquarie Commodities Research, who looked at China's Steel Industry: What Are the Drivers? And How Will the Overcapacity Problem be Solved?. Tan Zhuzhong, President, National Friendship Association of Electrolytic Manganese Metal Factories; Xizhou Zhou, Senior Director & Head of China Energy, HIS; Jongsub Lee, Senior Vice President, Steel Business Division, POSCO; Oscar Tjakra, Senior VP, Freight Research, Oldendorff; Simon Collins, Head of Business Development, South32 Zhou Jian, Chairman of IMnI's Statistics Committee (Vale); and Aloys d'Harambure, IMnI Market Research Manager rounded out the roster of speakers.

A panel discussion on How Will the New Mn Cycle Play Out? (effects of exchange rates on cost curves, energy constraints, environmental regulations, indexes, development of Exchanges…) – featuring Simon Collins, Head of Business Development, South32; Arnaud Tissidre, Vice President Marketing Mn Division, Eramet-Comilog; Alastair Stalker, Managing Director, Ore & Metal; Teruaki Ishiyama, Director & Senior Adviser, Nippon Denko; Cheng Bin, General Manager, Senior Engineer, Shanghai Jinneng International Trade Co., Ltd.; Bob Qiu, Chief Marketing Executive, Tianjin Hoperay Minerals Co. Ltd.; Serafino Capoferri, Editor, Mn Ore Cost Curve Service CRU and moderated by Anne Tremblay, IMnI’s Executive Director – was a first and much appreciated by the audience

The Conference ended with our traditional poll, which allows members of the audience to rate IMnI’s services and express their views on the steel and manganese industries and developing economic trends. (Full poll results can be accessed on the IMnI website at: Polling Report


http://www.manganese.org/events/imni-event/2015-imni-41st-annual-conference

http://www.manganese.org/

mailto:[email protected]

South32 sponsored the welcome cocktail, while Nippon Denko, Transalloys and United Manganese of Kalahari (UMK) sponsored the lunches.

The two days of technical tours organized just prior to the conference offered visits to Jinneng Alloy Operations -- Fengyu Ferroalloy Co. Ltd. and to Jiaocheng Yiwang Ferroalloy Co., Ltd.

The PPT’s delivered during the conference can be found on IMnI’s website at: IMnI 2015 Annual Conference – Presentations.

Chairman and Officers Elected at General Assembly

IMnI members re-elected Eramet’s Arnaud Tissidre as their Chairman on June 18 at the Annual Conference in Shanghai. Also re-elected was Pedro Larrea (Ferroatlantica) as Vice-Chairman. Esteban Rivero (Autlan) was elected as Vice Chairman and Ruan van Schalkwyk (Glencore) was re-elected Treasurer.The General Assembly also adopted some changes to the By-Laws, allowing for the creation of a 2nd Vice-Chairmanship and changes in the fee structure and consequent voting rights.

IMnI held its 12th EPD Conference on June 12 in Shenzhou Peninsula (Hainan Island)

Presentations are now available

IMnI hosted its 12th Electrolytic Products Division (EPD) Conference on Hainan Island on Friday, June 12. This year’s event was planned to coincide with the Annual Conference, also held in China.As a result, more IMnI ore producing members were in attendance. The event was a major success once again, with over 100 delegates in attendance. It is now the premier global Mn Metal and Mn Dioxide Conference. There were 8 presentations followed by a round-table panel discussion, animated by EPD Chairman Li Weijian, Vice-Chairman and CEO of CITIC Dameng Manganese Industries Limited. The topic of the panel: Panel Discussion: "Business Cooperation and Technical Exchanges between Overseas Mn Miners and Chinese Mn Market".

Next year’s EPD Conference will take place in late March – early April in Nanning around the Metal Bulletin Ferroalloy Conference in Hong Kong.

All presentations given at the 12th EPD Conference earlier this month are now available on IMnI’s website. You can download them in both English and Chinese by following this link: EPD Conference Presentations

Manganese OHES 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.

Manganese Matters n° 12 (Issued June 26, 2015) 4

http://www.manganese.org/events/imni-event/2015-imni-12th-electrolytic-products-division-epd-conference

http://www.manganese.org/events/imni-event/2015-imni-12th-electrolytic-products-division-epd-conference



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.

Special Discount for CIS Ferroalloys Markets ConferenceIMnl has negotiated a 10% discount* for IMnI members to the CIS Ferroalloys Markets conference which will be held in Tbilisi on September 14th. Registration form can be retrieved here.

International CIS Ferroalloys Markets conference, organized by Business-Forum and Metal-Expert, supported by Privat Intertrading and IMnI, will be held on 14th of September 2015 in Tbilisi Marriott Hotel, Georgia (more information here)

The conference is devoted to analysis of the current situation and prospects of the ferroalloys industry development in 2015-2016.

The key conference topics will relate to the plans of the largest ferroalloys producers, possibilities of supplies reorientation and markets expansion. Besides that will be discussed the questions of raw materials and changes in the structure of export supplies from Ukraine in connection with possible trade restrictions and the investigation of the ECE.

Main topics of the conference: Russian manganese ore market. Complete transition to the use of raw materials from far abroad Position of Ukraine on Russian Mn alloys market. Opportunities and prospects Mergers and acquisitions processes on the Si and Cr alloys market in Russia Redistribution of shares on the CIS markets. Ukrainian suppliers activity, opportunities for Indian

suppliers, foreign investors introduction Export potential of Russian and Ukrainian companies on Europe and Turkey markets New trade restrictions in Ukraine as a trump card for the domestic suppliers and a loss of market

for importers Raw materials component. Coke deliveries problems to the enterprises of Ukraine.


http://b-forum.com/web/busf.nsf/met/CISSteel/C2779650851057B9C2257E51002A8D92

http://www.manganese.org/events/other-event/international-cis-ferroalloys-markets-conference


Special Discount for Metal Bulletin Conference in IstanbulIMnl 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.


mailto:[email protected]

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



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

International CIS Ferroalloys Markets conference14 September 2015Tbilisi Marriott Hotel, Georgia

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

ARTICLE INDEX

ASIA (OTHER) Gulf Manganese advances Indonesia project .................................................................... 22/06/15

CHINA Low prices choked off China's manganese ore import trade in May .................................. 25/06/15 China Shandong Intl starts ferro-alloys tender for July ...................................................... 24/06/15 Shougang Group increases FeSi tender price in June ...................................................... 17/06/15 China’s Ningxia to shutter 74,000t/yr ferro-alloys capacity in 2015 .................................... 17/06/15 Chinese HC FeMn prices edge down on lower tender prices ............................................ 16/06/15 Tianjin Iron and Steel increases FeSi tender price in June ................................................ 10/06/15 China’s Guangxi province to implement lower electricity prices ........................................ 09/06/15

INDIA Indian chrome ore production drops in April ...................................................................... 18/06/15 Indian silico-manganese prices edge higher ...................................................................... 16/06/15 India market report - ferro-silicon price rises ...................................................................... 09/06/15

EUROPE Europe SiMn seen having enough support despite price slip ............................................ 17/06/15 Europe HC FeMn market cements floor on reduced output ............................................... 17/06/15 Europe Mn flake market consolidates price increase ......................................................... 15/06/15 Europe SiMn market set to trudge quietly through June .................................................... 10/06/15

CIS Ukraine's May FeMn output falls on month as Nikopol cuts output .................................... 09/06/15

OCEANIA

AFRICA & MIDDLE EAST Hearings begin into Eskom request for extra tariff hike ..................................................... 23/06/15 S Africa Eskom implementing power load-shedding again ................................................ 22/06/15 S Africa electricity users have last chance to stall further price hike .................................. 19/06/15 Assmang to shut HC ferro-manganese furnace ................................................................. 16/06/15 Eramet inaugurates Gabon manganese plant ................................................................... 15/06/15 Assmang will close one Cato Ridge furnace ...................................................................... 10/06/15

AMERICAS US SiMn market looking stable near term, awaits tender result ........................................ 26/06/15 Eramet Marietta back to full production after blaze ............................................................ 26/06/15 US orders for durable goods dip again in May ................................................................... 25/06/15 US FeMn market edges down on low-key spot trading ...................................................... 25/06/15 Brazil’s govt extends low-priced energy contract for electro-intensive industries .............. 24/06/15 US FeMn market seen hemmed in current price range ..................................................... 19/06/15 Mexico manganese producer cancels $100mn share issue .............................................. 19/06/15 US SiMn market edges up, awaits Nucor tender result ..................................................... 18/06/15 Eramet Marietta running normally after plant blaze ........................................................... 18/06/15 Eramet Marietta plant equipment damaged by fire ............................................................ 17/06/15 US FeMn market narrows in price range amid slow trading .............................................. 10/06/15

GENERAL INFORMATION Commerce delays ruling on SiMn imports ......................................................................... 22/06/15 MANGANESE ORE INDEX: High and low grades slide as oversupply shows no signs .... 19/06/15


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/

WEEK IN REVIEW: Dragon Boat slowdown, Greece showdown ...................................... 19/06/15 MANGANESE ORE INDEX: Grades swap fortunes as 37% ore slides ............................. 12/06/15 Ferro-manganese prices jump on South32, Assmang supply issues ................................ 12/06/15 TAPPED IN - the ores and alloys blog: Ferro-manganese is having its moment ............... 10/06/15

STEEL NEWS US steel output falls by 8.6pc in latest week ...................................................................... 25/06/15 US steel imports hit by weak crude drilling ........................................................................ 25/06/15 Argentina auto sector slump bad news for raw material suppliers ..................................... 24/06/15 Global steel output down in May ........................................................................................ 22/06/15 EU steel prices seen capped on looming imports – MEPS ................................................ 22/06/15 Nucor: Steel imports to depress profits .............................................................................. 19/06/15 Higher capacity utilisation raises US steel output .............................................................. 19/06/15 European steel outlook stable despite falling prices - Moody's .......................................... 10/06/15 Long steels markets set to cement strengthening stability ................................................. 09/06/15 LME delays launch of new steel contracts ......................................................................... 09/06/15 India imposes anti-dumping duty on stainless steel ........................................................... 09/06/15

OHES & SCIENCE

OTHER

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

EMM Manganese prices lose ground in China after one-month uptick ....................................... 25/06/15 Europe Mn flake market eases amid quiet demand ........................................................... 23/06/15 Mn flake prices stabilise in China ....................................................................................... 23/06/15 Mn flake prices edge up in China, outlook uncertain ......................................................... 16/06/15 Chinese selenium dioxide market rebounds on stronger Mn prices ................................... 09/06/15

EMD Why Lithium Isn’t the Big Worry for Lithium-Ion Batteries .................................................. 23/06/15


THE MANGANESE INDUSTRY

ASIA (OTHER) back to index

Gulf Manganese advances Indonesia projectMetal-Pages 22/06/2015

ASX-listed Gulf Manganese Corporation (GMC) has been told that the licensing process time for its smelter project in Timor, eastern Indonesia has been cut due to a new Indonesian government procedure. A Gulf statement said that the industrial business licence will take 20-25 days from application to be approved. A soon as it gets the two licences it needs, Gulf will start construction of the first furnace module, with the plant expected to come online within 12 months. The financial analysis of the redrafted study showed that the project has the potential to return an EBITDA of $374.7mn within ten years, supporting an estimated net value of $160.6mn using an 8pc discount factor, it said. The project needs start-up capital of $66mn, which is staged in 5 years. 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. High grade manganese ore will be bought from Timor and blended with medium grade high iron manganese ores sourced from Africa. The fully integrated manganese business benefits from established port and infrastructure. GMC will also have a supply agreement with a South African group for the supply of up to 80,000t/yr of manganese ore from its South African operations. The balance of the ore supply, up to 220,000t/yr, will be sourced domestically in Indonesia and Timor Leste. As ferro-manganese alloys are mostly used in stronger quality steels the major market will be Japan, Korea, Europe and China. China has a strategy to move to producing stronger quality steels to support an export industry to compete internationally. That should lead to increasing demands for ferro-manganese. The current annual consumption of high carbon ferro-manganese alloy is 4.2mn t. Gulf's annual ferro-manganese output will account for 2.5pc of world consumption, while annual world demand for high carbon ferro-alloys is forecast to increase 10pc in the next five years.

CHINA back to index

Low prices choked off China's manganese ore import trade in MayMetal Bulletin 25/06/2015

China’s manganese ore imports fell by over 20% on the month and year in May, as prices continued to fall leading traders to stay out of the market.


The country's manganese ore imports fell by 23% month-on-month in May to 1.07 million tonnes, also down 21% year-on-year.

China's April imports had risen 14% year-on-year and 2% against the previous month.

The drop in exports was largely attributed to manganese ore prices falling to low levels in May, which led to many traders sitting out of the market and overseas miners being reluctant to sell into China at low prices.

"There was less profit for importing manganese ore in May. Importers in China were not willing to trade. Neither are miners, some of [whom] shut export access to China in the middle of May," an importer told Metal Bulletin.

Metal Bulletin's 37% manganese ore index price in May fell to its lowest level since its launch in 2012.

Metal Bulletin's index price for 44% manganese ore also dropped to a record low.

"We assume that the import volume in June will go up slightly thanks to manganese ore prices picking up a little in June," a Shanghai-based analyst said.

Of the May imports into China, 228,500 tonnes came from Australia, 597,100 tonnes from South Africa, 42,400 tonnes from Brazil, and 57,300 tonnes from Gabon, according to the latest customs data.

China Shandong Intl starts ferro-alloys tender for JulyMetal-Pages 24/06/2015

China's Shandong International Trading Group, a subsidiary of Shandong Iron and Steel Group, has started a new round of monthly ferro-alloys procurements for delivery in July.

The company is planning to buy 12,285t of ferro-alloys for its parent company. The material includes ferro-silicon, silico-manganese, high carbon ferro-manganese, medium carbon ferro-manganese and 13 other products. The public tender will close at 12:00am on 25 June.

A number of steelmakers will start their monthly procurements in the next few weeks following the tender by Shandong Iron and Steel Group.

Ferro-silicon prices have increased since the start of June in response to tight prompt supply, and steelmakers’ tender prices have increased by RMB100-150/tthis month compared with the previous month.

Prices are expected to hold steady or increase slightly for delivery in July owing to tight supply, even though the steel market is sluggish.

Shougang Group increases FeSi tender price in JuneMetal-Pages 17/06/2015

Shougang Group, one of the top ten steelmakers in China, has released its ferro-alloys tender prices for delivery in June. The steelmaker has followed HBIS and Shagang Group by increasing ferro-silicon tender prices.

The tender price for ferro-silicon 75pc grade increased by RMB150/t compared with the previous month.


The tender price for silico-manganese 65/17 grade declined by RMB50/t compared with May. Additionally, the tender price for high carbon ferro-manganese 65C7.0 grade declined by RMB150/t.

China’s Ningxia to shutter 74,000t/yr ferro-alloys capacity in 2015Metal-Pages 17/06/2015

China’s Ningxia Hui Autonomous Region is planning to shutter 74,000t/yr of outdated ferro-alloys production capacity this year in line with official industrial policy.

Ningxia Hui Autonomous Region is planning to eliminate 30,000t/yr of outdated ferro-silicon production capacity and 44,000t/yr of outdated silico-manganese capacity, at Ningxia Jixin Alloys Co., Ltd.

Ningxia Hui Autonomous Region is one of the major ferro-alloys production areas in China, especially for ferro-silicon and silico-manganese.

The total ferro-silicon production capacity has been over 1mn t/yr in Ningxia province, and Ningxia Tianjing Metallurgy is the largest ferro-silicon producer there with its total capacity about 420,000t/yr.

The silico-manganese capacity is expected to be about 500,000t/yr, and Ningxia Shengyan Industrial Group Fuhua Metallurgy is the largest silico-manganese producer with its annual capacity about 300,000t/yr.

Chinese HC FeMn prices edge down on lower tender pricesMetal-Pages 16/06/2015

Prices for high carbon ferro-manganese have edged down in China on lower tender prices from HBIS, Shougang Group and other major steelmakers.

Hebei Iron and Steel Group (HBIS), the largest steelmaker in China, lowered its tender price for high carbon ferro-manganese 65pc grade by RMB150/t compared with May.

Shougang Group also lowered its tender price delivered in June.

China’s export prices of manganese alloys are not competitive compared with other ferro-alloys as producers must import ore, and manganese alloys have almost lost their export market share owing to 20pc export duty. Most smelters are supplying domestic steel mills, and prices are generally the same as monthly steelmakers’ tender prices.

Tianjin Iron and Steel increases FeSi tender price in JuneMetal-Pages 10/06/2015

Tianjin Iron and Steel Group, one of the largest steelmakers in Tianjin, China, has lowered its ferro-alloys tender prices for delivery this month, a similar move to HBIS and Shagang Group.

The tender price for ferro-silicon 72pc grade is up RMB150/t compared with the previous month, and the tender volume is 400t in June.

The tender price for silico-manganese 65/17 grade is down RMB50/t compared with the previous month, and the steelmaker plans to buy 2,000t for its requirements this month.

Additionally, the steelmaker has lowered its tender price for high carbon ferro-manganese 65pc grade by RMB150/t compared with May, and the tender volume is 400t.


China’s Guangxi province to implement lower electricity pricesMetal-Pages 09/06/2015

The local government of China’s Guangxi Zhuang Autonomous Region is to cut electricity prices in Nanning, Liuzhou, Guilin, Guigang, Baise and Chongzuo in the rainy season to support industry in the area.

For ferro-alloys producers with transformer capacity of 220KV or above, the new electricity price has dropped toRMB0.46/kwh in the rainy season this year, a fall of RMB0.10/kwh compared with the dry season.

The new electricity will be effective on 1 July and end on 31 December of 2015.

Producers are challenged by slow consumer demand and the sluggish steel market, but ferro-alloys production costs are expected to fall due to the lower electricity prices.

Guangxi Zhuang Autonomous Region is one of the production bases for silico-manganese, and its output was 226,000t in March.

Guangxi Ferroalloy is the largest silico-manganese producerin the region, and its daily output is about 120t of silico-manganese and 50t of high carbon ferro-manganese. It has restarted three furnaces after being forced to shut down in October in response to sluggish consumer demand and high production costs.

INDIA back to index

Indian chrome ore production drops in AprilMetal-Pages 18/06/2015

Indian chrome ore production totalled 137,000t in April, down by 20.3pc from the same month last year, and 62.5pc lower than the 365,000t produced in March 2015.

Manganese ore production for April 2015 totalled 167,000t, a fall of 27.1pc from April last year and down by 14.4pc from the 195,000t produced in the previous month.

These falls, and the subsequent tightening of supply are attributable to the continuing idling of a number of mines because of a variety of mining, licensing and environmental concerns. While some mines previously closed for these reasons have restarted operations, their ramp-ups continue at little more than a steady pace because of the overall weakness in demand from the ferro-alloy markets. This has ensured that even with ore stockpiles and the restart of some mines, the chrome and manganese ore markets remain in tight supply.

Output is expected to rise over the current quarter as more mines receive clearance from local authorities and are allowed to resume operations. All mines in Odisha, the state most heavily affected by licensing reviews and mine closures, should be allowed to restart in the coming months if the mining firms' schedules are met.

Mining for other metals was less affected by these problems, with magnesite production rising by 10.0pc to 23,000t, lead concentrate production increasing by 48.5pc to 21,000t, copper concentrate production rising by 9.6pc to 11,000t and zinc production increasing by 56.4pc to 125,000t in April compared with the same month in the previous year.

Indian silico-manganese prices edge higherMetal-Pages 16/06/2015

Indian silico-manganese prices have lifted slightly this week, as producers extended payments terms despite limited buying demand.


The current price for 60/14 grade rose by Rs500/t for the low-end of the previous assessment.

Suppliers have been pushing for higher prices to compensate for increased production costs resulting from higher power tariffs, and succeeded in raising the lowest end of the price range by offering extended payment terms with the period of credit being increased from 45 days to 60 days in order to attract buyer interest.

The export market has remained quiet with few transactions completed.

All the export business this week has been from traders in Asia and the Middle-East, with no sign of any upturn in European demand.

India market report - ferro-silicon price risesMetal-Pages 09/06/2015

Ferro-silicon prices in Indian rose because of supply constraints, but other ferro-alloy prices remained flat.

The continuing weakness of the rupee is increasing production costs and putting producers under pressure to secure higher prices to compensate. But ferro-alloy demand remains weak, with steel producers able to cope with weaker consumer demand without the need to buy in the spot market.

There has been no change in high-carbon ferro-manganese 65-70pc grade prices. Demand remains low, with limited activity in the spot market as consumers require little more than their contracted volumes. While some producers in Chhattisgarh are looking to increase prices to offset a recent rise in power tariffs, the continuing weakness in demand and ample supply could limit any price rise in the near future.

CIS back to index

Ukraine's May FeMn output falls on month as Nikopol cuts outputMetal-Pages 09/06/2015

Ukraine’s largest ferro-alloy producer Nikopol Ferroalloy Plant continued to cut its ferro-manganese output in May to 300t, down from 900t in April and down from 1,100t per month earlier this year. The plant’s silico-manganese production was also lower in May.

Overall, the country's output of silico-manganese remains at a comparable level as last year the total ferro-manganese output fell significantly. Ukraine’s ferro-silicon production also remains low year-on-year because of the closure of the Stakhanov Ferroalloy Plant although Zaporozhye continues to keep its production of this ferro-alloy higher than last year to make up for the reduction.

EUROPE back to index

Europe SiMn seen having enough support despite price slipMetal-Pages 17/06/2015

The European silico-manganese market has slipped in the past week amid persistently quiet buying interest on the spot market, although there are enough signs of strengthening underlying consumption to offer support. Steelmakers of long products are showing little buying interest in supplementing their intake of raw materials in longer term delivery settlements.


While July is traditionally the slowest month of the year for the spot market in ferro-alloys in Europe, there should be enough underlying consumption and a steadily strengthening construction sector to hold values through Q3. The European construction industry is expected to increase an average 2.3pc each year through 2018, an upward revision from the last forecast of industry research consultants Euroconstruct. Euroconstruct is a professional network of institutes in 19 countries that produces bi-annual publications covering the key construction sectors of civil engineering, residential and non-residential construction. Overall construction volume growth across the 19 countries this year is forecast to be 1.9pc. European construction volume growth is then expected to accelerate to 2.4pc in 2016 and to 2.6pc in 2017.

Europe HC FeMn market cements floor on reduced outputMetal-Pages 17/06/2015

The European standard grade ferro-manganese market is looking steady in the near term, cementing a floor going into the traditionally slower weeks of the northern hemisphere summer, with support coming from reduced production in South Africa. The European refined ferro-manganese market is looking similarly held due to tighter availability in Europe, as well as garnering support from firmer market sentiment in standard grade. South Africa's Assmang will shut one of the four furnaces at its Cato Ridge manganese alloys smelter due to current weak market prices and increasing electricity costs, the company said in a statement. Assmang said it will adjust the size of its workforce in line with that needed to operate three furnaces, which are producing high carbon ferro-manganese. The shuttered furnace also produces high carbon ferro-manganese. The company’s Cato Ridge Alloys refined alloy joint venture will be unaffected and will hold production levels, it said. The four furnaces at Cato Ridge have been producing some 200,000t/yr of product – 125,000t of high carbon and 65,000t of medium carbon ferro-manganese. The move from Assmang follows another impact to production at domestic rival South32, which was spun out of BHP Billiton earlier in 2015. South32 last week said that it will delay the restart of three of the four high carbon FeMn furnaces at the Samancor Manganese joint venture’s Metalloys alloy plant at Meyerton in South Africa Import duties will add about €40 to the Indian price. Still, all imports are at a low level as spot buying interest is low as steelmakers have a ready supply of material in their stockpiles, while July is usually when heavy industry slows in the northern hemisphere. The steel industry in Europe is expected to slow operating rates for 2-3 weeks in July and early August to do their regular maintenance and repair programmes. Most manganese is consumed as high carbon ferro-manganese for addition to carbon steels. In steels of lower carbon content, the medium and low carbon ferro-alloys are used. Ferro-manganese is added to steel production to add strength and hardness to the final product, usually flat steel. Underlying consumption in ferro-manganese is also seen as supportive.


Europe Mn flake market consolidates price increaseMetal-Pages 15/06/2015

European manganese spot flake prices have been steady in the past week, consolidating an increase from the week before on short covering against tighter availability in China. Much of the stockpiled material in Europe has already been allocated to customers, according to industry sources. A big order for a major German steel mill to produce some 150,000t of pipe had prompted the short covering, while production cuts in China have since supported that move. Apparently, more and more Chinese manganese flake factories have shuttered production, while there was an increase in the tender price from Korean steelmaker POSCO. POSCO, the biggest manganese consumer in South Korea, last month issued its manganese flake tender price, down more than $250/t on its last purchase in March. But further price increases will depend on whether the production cuts in China result in a fundamental fall in oversupply, as there have been reports of major levels of stockpiled material in the country. There are only 26 manganese producers operating in China, from 78 producers at the end of last year, with 16 of them operating at half or one-third of their respective production capacity levels, and daily production is below 250t. Daily production levels so far this year have fallen 60pc, year-on-year, according to the National Fellowship Association of Electrolytic manganese Metal (EMM) Factory Managers in China on Monday. About 90pc of electrolytic manganese metal enterprises have been running at a loss since prices hit their lowest level in May 2015. Last year, China produced 1,280,000t of electrolytic manganese, up more than 16pc from 1,100,000t in 2013. Production capacity increased to 1,950,000t in 2014, from 1,880,000t in 2013.

Europe SiMn market set to trudge quietly through JuneMetal-Pages 10/06/2015

The European silico-manganese market is looking to be stable through June, completing the first half of 2015 with no changes to the Metal-Pages' assessed price. Market spot prices have been unmoved since last October. Prices have moved only some €5t on average in the past 12 months, according to Metal-Pages' last assessed data on 09 June. European prices are less than €50 off their decade average low last seen in September 2013.

Consumers in the steel sector are seemingly content to draw down raw materials in their longer term contracted deliveries, according to industry sources. Delivery volumes in longer term contracts can be tweaked between steelmaker and raw material supplier, so any spot business being done is usually at a low level and on an inter-merchant basis.


July will see the start of the seasonal slowdown, when heavy industry traditionally shuts or cuts production to do annual repairs and maintenance programmes. Plant workers usually go on vacation around this time. The slowdown sometimes runs into August and varies from steelmaker to steelmaker, depending on market demand and repair and maintenance needs. Underlying consumption However, underlying consumption in the construction sector, the key end-user for silico-manganese has been climbing slowly since early last year and is giving some support to spot prices. Production cuts, increasing raw materials prices and slowly strengthening demand are seen cementing support for the cost of long steels in the coming weeks, according to a monthly outlook from European steel body IREPAS. This is despite the potentially shaky influences of erratic currency movements and political uncertainties in countries such as Greece, which is struggling with very heavy debt levels, it said in its report. The European long steel products market is stable as demand has been picking up slightly, it said. Domestic European long steel suppliers are adapting to demand, while the weakened euro and anti-dumping threats are reducing buying interest in imports. The stable pricing policy of European suppliers has also reduced such interest.

OCEANIA back to index

AFRICA & MIDDLE EAST back to index

Hearings begin into Eskom request for extra tariff hikeMetal-Pages 23/06/2015

South Africa's energy regulator has today begun public hearings into power utility Eskom’s request for a 25.3pc tariff increase for the 2015/16, 12.6pc of which has already been granted.

Submissions are being made by a number of companies, industry bodies, unions and individuals as to why the struggling utility should not be granted a second double-digit tariff increase in the same year, despite the fact that it is short of cash for maintenance, running its existing power stations and completing the building of two new power stations.

Eskom has resorted to regular load-shedding to meet demand, but many organisations would prefer scheduled load-shedding to continue, instead of another big hike in tariffs. Eskom is arguing that it needs the second increase to pay for gas turbines, diesel and other additional costs it is incurring in “keeping the lights on.”

South Africa’s ferro-chrome industry could face the closure of some smelters and possibly as many as 200,000 job losses due to higher electricity prices, said sources. Jacobus Zaayman, a representative from the Ferro-Alloys Producers Association said at the public hearings that "the increase in electricity prices will further increase production costs and lead to the closure of most smelters in South Africa.”

Metal-Pages tried to obtain comment from the Glencore Merafe Chrome Venture, the country’s biggest integrated FeCr producer, but answers to questions posed had not been received at the time of going to press.


Glencore Merafe has installed energy efficient technology at its 360,000t/yr Lion II expansion project which is scheduled to be fully commissioned by the end of June. This technology is 35pc more efficient than previous generation smelter technology.

International Ferro Metals, a smaller FeCr producer with two furnaces, has installed a co-generation plant to reduce its reliance on Eskom.

Meanwhile, opposition to Eskom’s tariff increase request has come from the Steel and Engineering Industry Federation, the National Union of Metalworkers, the Confederation of South African Trade Unions and the Energy Intensive User Group of Southern Africa.

The public hearings continue on 24 June and it is expected that the regulator will make its decision known by the end of June.

S Africa Eskom implementing power load-shedding againMetal-Pages 22/06/2015

Despite communicating a few weeks ago that it may be able to avoid power load-shedding in the June-August winter months, South Africa’s battling electricity Eskom is again struggling to meet demand.

At the weekend, it briefly imposed Stage 3 load-shedding, the second highest level of power outages (Stage 5 being a national blackout), and Stage 2 load-shedding is being implemented later today.

Most load-shedding at the moment is taking place from the late afternoon to late evening.

Importantly, the National Energy Regulator of South Africa is this week holding public hearings ahead of its decision on whether or not to grant Eskom a further 12.6pc tariff increase for 2015/16, taking its overall increase to 25.3pc. The decision is due by the end of June.

While most mining and metals companies are coping with load-shedding, some are conducting essential maintenance in the winter to reduce their electricity consumption at a time when seasonal tariffs are at their highest. Many companies have installed energy-efficient technology, co-generation plants and are investigating alternatives to relying on the fragile national grid.

Today, South Africa’s opposition leader, Mmusi Maimane, has accused Eskom’s acting CEO, Brian Molefe, of misleading the public. He pointed to the fact that Molefe, who’s acing period comes to an end in July, indicated that there would be no outages in winter, especially due to the first unit coming on-stream from the long overdue Medupi power station and 900MW coming back from Koeberg, the country’s only nuclear power station.

S Africa electricity users have last chance to stall further price hike Metal-Pages 19/06/2015

South Africa’s electricity users – including mining and smelting companies – have one more chance to object to a second double digit tariff rise being imposed by power utility Eskom during the 2015/2016 period.

The National Energy Regulator of South Africa (Nersa) has invited written and oral representations for public hearings to take place on 23 and 24 in Johannesburg, before it announces its decision on Eskom’s tariff hike request at the end of the month.

“Nersa would like to encourage stakeholders and the public to actively participate in this process by submitting written comments and attending or making oral representation at the public hearings,” the organisation said.


While Eskom has already been granted a 12.6pc tariff increase for 2015/16, it has argued that is needs a total tariff rise of 25.3pc to pay for "keeping the lights on", including gas turbines, diesel and other out-of-pocket costs related to its power generation activities.

Several mining and manufacturing companies have been affected by power outages since November last year, caused mainly by scheduled and unscheduled maintenance at Eskom’s aging power stations, technical faults and the fact that two new power stations under construction are up to five years behind schedule.

It is expected that several industry groups will make oral representations at the hearings as increasing power costs are escalating the running costs of many businesses.

Eskom has argued that there may be a higher degree and greater intensity of load-shedding if it does not get another 12.7pc in tariff, saying that this will be more damaging to the economy than pricier electricity.

On the other hand, several business groupings – such as the Steel and Engineering Industry Federation of South Africa – are arguing that another sharp rise in power costs will harm business profitability, affect production and threaten jobs.

Assmang to shut HC ferro-manganese furnaceMetal-Pages 16/06/2015

South Africa's Assmang will shut one of the four furnaces at its Cato Ridge manganese alloys smelter due to current weak market prices and increasing electricity costs, the company said. Assmang said it will adjust the size of its workforce in line with that needed to operate three furnaces, which are producing high carbon ferro-manganese. The shuttered furnace also produces high carbon ferro-manganese. The company’s Cato Ridge Alloys refined alloy joint venture will be unaffected and will hold production levels, it said. The move follows a review of its manganese alloy smelting operation at Cato Ridge in KwaZulu-Natal, the company statement said. No further details were given. June 16 is a national holiday in South Africa. Assmang had already announced in February 2015 the shutdown of its Machadodorp manganese alloys smelter in South Africa’s Mpumalanga province on care and maintenance due to weak international prices. At the time an official told Metal-Pages that the four furnaces at Cato Ridge will persist in producing some 200,000t/yr of product – 125,000t of high carbon and 65,000t of medium carbon ferro-manganese. The move from Assmang follows another impact to production at domestic rival South32, which was spun out of BHP Billiton earlier in 2015. South32 last week said that it will delay the restart of three of the four high carbon ferro-manganese furnaces at the Samancor Manganese joint venture’s Metalloys alloy plant at Meyerton in South Africa.

Eramet inaugurates Gabon manganese plantMetal-Pages 15/06/2015


French mining group Eramet has inaugurated its Moanda Metallurgical Complex, which makes manganese metal and ferro-manganese, in Gabon, central Africa, according to a company statement on Monday. Chief executive officer Patrick Buffet said construction started in 2010 and was the result of a model public-private partnership between the Gabonese state and the Eramet Group. The Grand Poubara hydro-electric dam is a major step forward in Gabon's industrialisation and makes long-term viability and profitability possible for the Moanda Metallurgical Complex, he said. Unlike the Moanda Industrial Complex, which has existed for many years, the metallurgical complex is a facility for metallurgical processing ore, comprised of a manganese metal plant with 20,000 t/yr production capacity and a silico-manganese plant designed to produce 65,000 t/yr, he said. The Comilog operations in Gabon produced its first ferro-manganese in August last year and its first manganese metal in February this year. Eramet, the world’s second-biggest producer of high grade manganese ore and the biggest producer of refined manganese alloys, is on track to produce 4mn t/yr of manganese ore. In 2014 the company produced 3.7mn t of manganese ore and sinter.

Assmang will close one Cato Ridge furnaceMetal Bulletin 10/06/2015

Assmang will close one of the four furnaces at its Cato Ridge manganese alloys smelter, due to low prices and rising electricity costs, the company has announced.

The South African manganese producer said it will adjust the size of its workforce in line with that needed to operate three furnaces.

The company’s Cato Ridge Alloys refined alloy joint venture will be unaffected and will keep producing at its capacity.

Manganese alloys prices have been depressed over the past two years but have risen since late 2014. depressed over the past two years

Assmang announced in February that it would stop producing manganese alloy at its Machadodorp furnace in April and that it had notified unions of plans for staff retrenchment at its Black Rock mine.

Cato Ridge continued to supply contract customers.

Cato Ridge has been producing about 200,000 tpy high carbon ferro-manganese, 75,000 tonnes of which is converted into medium carbon ferro-manganese.

Machadodorp used to produce about 60,000 tpy high carbon ferro-manganese.

The Black Rock Mining Complex produces about 3.3 million tpa manganese ore and the company's Gloria mine accounts for about 600,000 tonnes of this.

AMERICAS back to index

US SiMn market looking stable near term, awaits tender resultMetal-Pages 26/06/2015


US silico-manganese spot prices have been steady in the past week, consolidating a small gain from the week before and looking fairly stable for the early days of July. The market is awaiting the outcome of a major tender to set the potential trend in the coming weeks. There have been some small sales for prompt delivery done at the upper end of the range. US steelmaker Nucor has issued a tender for 6,600t of silico-manganese for delivery in the second half of this year. The result of that tender was due to be settled around 24 June and will set the US market in the near term, although it may take up to a week before an announcement. Manganese alloys markets in the States are looking very quiet in the near term. Carbon steel production utilisation is a fraction off 74pc, according to the latest trade data, from a multi-year low of less than 70pc in April 2015. The current percentage utilisation is a few percent off, year-on-year, however. Stainless steel production capacity utilisation has been weaker, though, currently in the upper 60s percentage rate. ShutdownsUS steelmakers will be shutting for a couple of weeks in July, the quietest month of the year in heavy industry when workers go on vacation and maintenance and repair programmes happen at plants. Some steelmakers will be operating as usual, however, notably those making longs steel products that shut down earlier in Q2 2015 as steel import levels were plentiful in the early months of this year, particularly from Asia. Steelmakers such as Vallourec, ArcelorMittal and US Steel are likely to operate normally through Q3 to make up for lost production. Some tube and pipe steel-makers, however, which account for around 15pc of total US steel production, have already been shut for the past couple of months and are unlikely to restart until after the seasonal slowdown in August. US steelmakers with considerable operations in the country have petitioned the US International Trade Commission to impose anti-dumping duties on imported steel from China, India, Italy, South Korea, and Taiwan for alleged unfair pricing. AD probe, idled outputOn 24 June the US Department of Commerce (Commerce) announced the initiation of AD (anti-dumping) and CVD (countervailing duties) investigations of flat-rolled steel imports from China, India, Italy, Korea, and Taiwan. Commerce is scheduled to make its preliminary CVD determinations in August 2015 and its preliminary AD determinations in November 2015. In terms of domestic production, US silico-manganese producer Felman Production has delayed restarting its idled furnace that was shut for maintenance and upgrades for ten weeks in February. The furnace was to be restarted early last month, but weak market conditions have knocked that target. 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. The US silico-manganese market was last at an average below 50¢/lb in September 2013.


Eramet Marietta back to full production after blazeMetal-Pages 26/06/2015 US ferro-alloys producer Eramet Marietta is back in full production after a fire broke out at the plant in the State of Ohio early last week. Eramet Marieta produces silico-manganese, as well as high, medium and low carbon ferro-manganese. The fire started in the crusher system, which was installed in 2006. The crusher system is used to size material as required by the customer. Although initial assessments are persisting, a portion of the crusher system is already back in operation, the company told Metal-Pages. Inspections and repairs have been done and the company expects no interruption to deliveries to its customers. The Marietta plant has three electric arc furnaces that produce manganese alloys, a 30 megawatt furnace produces silico-manganese, while two other furnaces, rated at 16 and 22 megawatts, produce high carbon and refined ferro-manganese.

US orders for durable goods dip again in MayMetal-Pages 25/06/2015

A recovery in the US manufacturing sector continues to stutter as orders for durable goods fell 1.8pc in May from a month earlier, driven mainly by weaker demand for commercial aircraft.

Latest Commerce Department figures show, however, that orders minus transportation edged up 0.5pc on higher demand for metal parts, heavy machinery and networking equipment.

New orders for fabricated metal products were up 0.6pc in May at $29.8mn compared with $29.6mn the month prior, while new orders for motor vehicles and parts were roughly flat at $50.8mn.

But orders for non-defence aircraft and parts were down 35.3pc in May at $9.7mn compared with April’s total of $15.1mn, while for transportation equipment were down 6.4pc to $71.6mn.

The automotive industry, which has been the bright spot for the US economy over the past couple of years, has underpinned many metals like steel and related downstream industries.

US FeMn market edges down on low-key spot tradingMetal-Pages 25/06/2015

The US ferro-manganese spot price range has eased amid low-key spot trading activity, with buying interest virtually slowed to a halt as domestic heavy industry moves into July. The HC ferro-manganese spot price is off $10 at the top end, according to Metal-Pages' last price assessment on 25 June. Average high carbon ferro-manganese prices dropped to a multi-year annual low in 2009.


Spot business in the States, already quiet as steelmakers seem content to rely on shipments delivered to them in quarterly and annual contracts, is expected to become even quieter in July, the month when they mostly do maintenance. However, in the coming weeks price support is seen from a gradual increase in steel production capacity utilisation, which has recovered to almost 74pc in mid-June, from below 70pc in April 2015, according to the latest trade data. Steel importsThat level of support should be underscored through new anti-dumping investigations against steel imports, which have weighed heavily this year on US steel production rates and prices. Import investigations usually have the effect of knocking import levels as exporters are frightened off on the prospect of losing a valuable revenue source in the longer term, with the result that domestic producers can increase their production levels. Any increase in domestic steel production in the US will mean more demand for raw materials. On 24 June the US Department of Commerce (Commerce) announced the initiation of AD (anti-dumping) and CVD (countervailing duties) investigations of flat-rolled steel imports from China, India, Italy, Korea, and Taiwan. The steel products are typically used in the manufacture of trucks and cars, appliances, agricultural equipment, and industrial equipment. The US International Trade Commission (ITC) is scheduled to make its preliminary injury determinations on or before 20 July, 2015. Commerce is scheduled to make its preliminary CVD determinations in August 2015 and its preliminary AD determinations in November 2015. In terms of manganese alloys supplies, further support is seen from reduced production in South Africa, a key exporter to the US. Supply supportSouth African producers South32 and Assmang have taken remedial action against steadily weakening high carbon ferro-manganese prices that have fallen more than 8pc in the US this year, Metal-Pages' data showed. Much of the manganese alloys supplied to the US market each year is imported from South Africa and Australia and is settled on a formula basis for delivery to the major steel mills through the calendar year. US refined alloys are selling at some 20pc premium to high carbon material due to more expensive production costs, although business has been similarly low level this year. Perhaps only a truckload or two of refined ferro-manganese is sold on the US spot market each month, with most of that being medium carbon grade.

Brazil’s govt extends low-priced energy contract for electro-intensive industriesMetal Bulletin 24/06/2015

Brazil’s president Dilma Rousseff has signed a provisional law that extends until 2037 the low-priced energy contract between state-owned power company Chesf and a group of electro-intensive industrial consumers in the country’s northeast region.

The measure will benefit companies such as Ferbasa, Paranapanema, Vale, Gerdau and Braskem, which would have to pay nearly three times more to acquire energy once the contract with Chesf expires in June 30, 2015.


Under the current contract, signed over three decades ago, energy is priced at around 110 Brazilian Reais ($36) per megawatt hour (MWh), while the average price at the country’s free market is currently at 365 Reais per MWh.

Energy prices in Brazil, which relies heavily on hydroelectricity, have soared especially since last year due to a severe drought and the lack of investment.

Electro-intensive industries in the northeast of the country have been pressuring the government over the renewal of the contract with Chesf, claiming that the non-renewal would lead to significant decrease in production and job losses.

The provisional law signed by Rousseff on Tuesday June 23 renews the contract of these companies with Chesf until February 8, 2037.

The energy price will be initially increased by 22.5%, effective July 2015, after which it will be yearly adjusted according to a compound inflation index.

Earlier this year, Brazil’s government vetoed the renewal of the contract with Chesf without alterations in tariffs, saying that this "would have harmful effects on the low tariffs in the electricity sector and to competition in the sector".

"We believe that the government stepped back due to political rather than economic reasons", analysts at JP Morgan wrote in a note to clients on Tuesday June 23.

Uncertainties over the renewal of the contract with Chesf led ferro-alloys producer Ferbasa to reduce sales to raise inventories of finished products, which by the end of May were at 101,313 tonnes.

The strategy would allow the company to continue supplying key clients over the second half of 2015 in the event of the non-renewal of the contract.

Several Brazilian ferro-alloys and silicon metal producers, mainly in Minas Gerais area, have been seriously hit by the expiring of energy contracts and the current high prices that have made production unviable.

US FeMn market seen hemmed in current price rangeMetal-Pages 19/06/2015 The US ferro-manganese spot price range is looking trapped in its current price range in the near term, with the market held between supply reductions and domestic steel shutdowns. Any increase in prices due to supply reductions will be offset on decreased raw materials usage in coming weeks. The US steel sector has been operating at some 74pc of average utilised production capacity. The move in South Africa, a key exporter of manganese alloys to the US, to reduce production at South32 and Assmang in the near term is being counteracted on traditional summer US steel shutdowns in the coming weeks. In the first quarter of 2015, US steel imports surged 20pc year-on-year to 10.6mn t. Those cheap imports impacted the margins of domestic steelmakers such as US Steel, Nucor and ArcelorMittal. Some major US steelmakers have idled their steel plants in a bid to rationalise operations and be competitive. Much of the manganese alloys supplied to the US market each year is imported from South Africa and Australia and is settled on a formula basis for delivery to the major steel mills through the calendar year.


South Africa's Assmang will shut one of the four furnaces at its Cato Ridge manganese alloys smelter due to current weak market prices and increasing electricity costs, the company said recently. And South32 last week said that it will delay the restart of three of the four high carbon ferro-manganese furnaces at the Samancor Manganese joint venture’s Metalloys alloy plant at Meyerton in South Africa US refined alloys are selling at some 20pc premium to high carbon material due to more expensive production costs. Still, spot business in refined alloys has also been low key through 2015 so far. Perhaps only a truckload or two of refined ferro-manganese is sold on the US spot market each month, with most of that being medium carbon grade.

Mexico manganese producer cancels $100mn share issueMetal-Pages 19/06/2015

Autlan, North America's biggest manganese producer has cancelled a share issue worth up to $100mn because of unfavourable market conditions.

Pedro Garza García, Mexico-based Autlan said it will look at other alternatives to fund expansion plans.In November 2014, the company revealed plans to invest $170mn in high grade manganese production at a site in Hidalga state in eastern Mexico.

Autlan also plans to spend $110mn on a hydroelectric project in Puebla state. It will also build two wind farms and two other hydroelectric projects. Hydroelectricity will power Autlan's mining activities, while energy from the wind farms will be sold to third parties.

The company's first quarter ferro-alloy sales were down 19.1pc against the opening three months of last year at 47,000t.

US SiMn market edges up, awaits Nucor tender resultMetal-Pages 18/06/2015

US silico-manganese spot prices have edged up in the past week and seen fairly stable through the rest of June at least, with suppliers awaiting the outcome of a major tender.

US steelmaker Nucor has issued a tender for 6,600t of silico-manganese for delivery in the second half of this year. The result of that tender is due to be released around 24 June and it will set the US market in the near term. US steelmakers will be shutting down soon for the seasonal slowdown when workers go on vacation and repair and maintenance programmes are done. In the US, the shutdowns typically happen in the last week of June and the first week of July, the latter week having the national holiday of American Independence. Most US steelmakers are expected to shut for only two weeks this summer. Steelmakers such as Vallourec, ArcelorMittal and US Steel have already shuttered production this year, so are likely to run as much as possible in the summer months to make up for that loss.

US steel ratesUS steel mills are operating at an average capacity utilisation rate around 74pc, according to the latest industry data, climbing steadily off a decade low of around 67pc seen in April 2015.


In response to the sharp increase in steel imports in early 2015, as well as last year, steelmakers with considerable operations in the US, such as ArcelorMittal, have petitioned the US International Trade Commission seeking the imposition of anti-dumping duties on imported steel from China, India, Italy, South Korea, and Taiwan for alleged unfair pricing of those imports. If anti-dumping duties are levied on those steel imports, it will make imported steels less competitive and boost the prospects of steelmakers in the US. But the US silico-manganese spot market has garnered further support from a delay in domestic producer Felman Production restarting its idled furnace that was shut for maintenance and upgrades for ten weeks in February. The furnace was to be restarted early last month. 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.

Eramet Marietta running normally after plant blazeMetal-Pages 18/06/2015

US ferro-alloys producer Eramet Marietta is running production as normal after a fire broke out at the plant in the State of Ohio early this week. Eramet Marieta produces silico-manganese, as well as high, medium and low carbon ferro-manganese, according to company spokesperson Joy Frank-Collins. The fire started in the crusher system, which was installed in 2006, although the company is investigating the cause of the blaze, she said. Most of the damage seen so far has been to a conveyor belt and other parts of the crusher system. The fire was dealt with in an hour. Production was uninterrupted throughout the entire incident. Shipments have so far been unaffected, but company officials are meeting with the suppliers of the crusher system to determine if deliveries will be impacted in the near term. The crusher system is used to size material as required by the customer. The Marietta plant has three electric arc furnaces that produce manganese alloys, a 30 megawatt furnace produces silico-manganese, while two other furnaces, rated at 16 and 22 megawatts, produce high carbon and refined ferro-manganese. Eramet last month posted stronger manganese ore and alloys production in the first quarter of 2015, year-on-year, amid strengthening underlying demand. On an annual basis, manganese alloy production was 169,500t, from 165,500t; and manganese alloy sales dropped 1,000t to 169,500t.

Eramet Marietta plant equipment damaged by fireMetal Bulletin 17/06/2015

Eramet Marietta Inc is assessing whether fire damage to crushing equipment at its Marietta, Ohio, USA, facility will affect shipments, although the manganese alloy plant’s furnace is continuing to operate.

There were no injuries in the June 15 blaze, a Marietta Fire Department spokesman told Metal Bulletin sister publication AMM.


"Furnace production continues as usual, while the extent of damage and ability to operate crushing equipment is currently still under assessment," an Eramet Marietta spokeswoman told AMM via e-mail on June 15. "It’s very early still. The impact, if any, on shipments to customers will only be known after we fully assess the extent of the damage and our ability to repair/operate the crushing equipment."

The Marietta Fire Department spokesman said that the cause of the blaze was still being determined.

US FeMn market narrows in price range amid slow tradingMetal-Pages 10/06/2015 Price floorThe US ferro-manganese spot price range has narrowed in the past week, with the top end dropping $20/t amid a virtual dearth of business. Manganese alloys suppliers are showing reluctance to cut their offer prices despite quiet spot demand, while relatively stable steel prices and firm underlying consumption is giving support. Much of the manganese alloys supplied to the US market each year is imported from South Africa and Australia and is settled on a formula basis for delivery to the major steel mills through the calendar year. US refined alloys are selling at some 20pc premium to high carbon material due to more expensive production costs. Still, spot business in refined alloys has also been low key through 2015 so far. Medium carbon is being nominally quoted. Perhaps only a truckload or two of refined ferro-manganese is sold on the US spot market each month, with most of that being medium carbon grade. The US steel sector, currently operating at some 72pc of average utilised production capacity, traditionally shuts for a couple of weeks through July in the northern hemisphere summer. The exception to the shutdowns may be the high temperature, speciality sector that makes steel products for jet engines and other applications in aerospace, according to industry sources. Steel outlook The US steel market is looking mixed in terms of prices. Recent deals for hot rolled coil steel in the US have seen price increases, while buyers report delivery lead times are well into June and suppliers are pushing for further price increases beyond then, according to a recent steel report from consultancy MEPS. Hot-rolled plate prices have been slipping, although mills report firmer demand in recent weeks as stock levels are being depleted on customer demand. Falling prices have found a floor for cold rolled coil, while importers are less keen to buy as trade authorities consider trade action. US car demand is stabilising at firm levels, while demand from the construction sector has been getting stronger, but well below its potential. Appliance manufacturers are seeing flat demand with coated steel prices moving up after reaching a bottom in late April, MEPS said in the report.

GENERAL INFORMATION back to index


Commerce delays ruling on SiMn importsMetal Bulletin 22/06/2015

The US Commerce Department has delayed until September 17 the deadline for a preliminary determination in its anti-dumping investigation of silico-manganese imports from Australia.

Felman Production LLC and Marietta, Ohio-based Eramet Marietta Inc requested the postponement from the original July 29 deadline to allow Commerce additional time to review and clarify responses and make relevant additional requests for information.

Felman, the Letart, West Virginia-based subsidiary of Miami-based Georgian American Alloys Inc, filed the trade case in February in response to "large and increasing volumes of low-priced imports of silico-manganese" from Australia’s only producer, Tasmanian Electro Metallurgical Co.

Australian silico-manganese shipments to the USA totalled 70,800 tonnes last year, according to Commerce Department and US International Trade Commission data.

MANGANESE ORE INDEX: High and low grades slide as oversupply shows no signs of retreatMetal Bulletin 19/06/2015

High and low grade manganese ore prices fell on Friday June 19, with market participants reporting oversupply in China as the steel industry prepares for its summer slowdown.

Metal Bulletin’s 44% manganese ore index, cif Tianjin fell 1 cent.

Metal Bulletin’s 37% manganese ore index, fob Port Elizabeth lost 2 cents.

Challenging market conditions are creating tough competition among sellers, and larger suppliers have been more able than smaller participants to lower their prices to secure sales. Good-quality stock remains readily available to consumers, sources said.

"One tender could have 20 responses," a trader told Metal Bulletin.

And as manganese ore prices continue to follow those of manganese alloys, one source commented that prices are approaching break-even levels.

Nonetheless, suppliers have invested significantly in manganese ore production, and have to generate an income, even if prices are low, the source told Metal Bulletin.

"Ten years ago we saw manganese ore prices at $1.80 on a cif basis; these prices aren’t realistic, but never say never," a consumer said.

WEEK IN REVIEW: Dragon Boat slowdown, Greece showdownMetal-Pages 19/06/2015

As China starts its Dragon Boat Festival holiday and the northern hemisphere moves into summer shutdown mode, markets are nervously eyeing Greece and a showdown on its debt repayments to the IMF and EU.

A possible Greek exit from the Eurozone will have profound negative effects on the value of the euro and global currency markets and create uncertainty for metals markets.

Elsewhere, US steel production climbed by 1.5pc last week, as mills continued to increase capacity utilisation rates. Domestic raw steel production for the week ended 13 June was 1.74mn t, up by 20,000t from a week earlier, according to American Iron and Steel Institute (AISI) data.


The rise resulted from facilities operating at an average capacity utilisation rate of 73.9pc, 1.1 percentage points higher over the period. But output was still 7.4pc down on a year earlier, when the mean rate was recorded at 78.5pc, the AISI said. US steel production for the year to date stands as 40.1mn t, down from 43.2mn t last year. The utilisation rate is 4.9 percentage points lower at 72.4pc.

The US ferro-manganese spot price range is looking trapped in its current price range in the near term, with the market held between supply reductions and domestic steel shutdowns. Any increase in prices due to supply reductions will be offset on decreased raw materials usage in coming weeks. The US steel sector has been operating at some 74pc of average utilised production capacity. The move in South Africa, a key exporter of manganese alloys to the US, to reduce production at South32 and Assmang in the near term is being counteracted on traditional summer US steel shutdowns in the coming weeks.

US silico-manganese spot prices have edged up in the past week and seen fairly stable through the rest of June at least, with suppliers awaiting the outcome of a major tender. There have been a few, small sales for prompt delivery done at the upper end of the current range recently. US steelmaker Nucor has issued a tender for 6,600t of silico-manganese for delivery in the second half of this year. The result of that tender is due to be released around 24 June and it will set the US market in the near term.

MANGANESE ORE INDEX: Grades swap fortunes as 37% ore slidesMetal Bulletin 12/06/2015

Low grade manganese ore retraced its previous week’s gains on Friday June 12 as high grade clawed back some losses.

It was the exact reverse of the price performances tracked a week ago, when the high grade price surrendered most of its May gains as low grade prices started to edge up.

Metal Bulletin’s 44% manganese ore index, cif Tianjin rose 2 cents on June 12.

Metal Bulletin’s 37% manganese ore index, fob Port Elizabeth fell 5 cents.

Demand has improved but buyers are bidding aggressively, meaning keen suppliers are struggling to raise offer levels.

"Demand has picked up but prices are low," one trader told Metal Bulletin.

Most overseas suppliers to China reported largely stable prices and rollover offers and deals, but some lower prices were reported in China.

Ferro-manganese prices jump on South32, Assmang supply issuesMetal Bulletin 12/06/2015

Ferro-manganese prices shot up in Europe on Friday June 12 after two consecutive supply constraints were announced and others were rumoured.

South32 said this week it was delaying the restart of its Metalloys operation and Assmang announced it was shutting one of its four furnaces at its Cato Ridge site.

The two producers – both in South Africa – blamed poor market conditions for their decisions.


A third producer – not in South Africa – is understood to be experiencing logistical problems that are affecting its raw materials feed, according to several sources.

There was also a suggestion that a large European producer is posed to announce an unexpected summer maintenance shutdown.

Traders told Metal Bulletin they had hiked their offer prices in response to the announcements by South32 and Assmang, citing tightening availability.

"There is no ferro-manganese being offered due to the supply interruptions. Everyone is calling me for material," a trader told Metal Bulletin.

A consumer warned against panic, though, saying he does not accept that availability is tight when such warnings are accompanied by frequent unsolicited offers from suppliers.

"People are saying 'this facility is about to close so please buy from us now,’" he said.

The South32 news referred to a delayed restart, not a shutdown, meaning the lack of supply from that source was already priced in, he added.

"There’s plenty of material around and South32’s plant was already closed so that’s old news to me," the consumer said.

Still, the consumer conceded that if a third supply issue is confirmed, the situation will be more alarming.

TAPPED IN - the ores and alloys blog: Ferro-manganese is having its momentMetal Bulletin 10/06/2015

Ferro-manganese is in the spotlight after weeks of largely stable prices and a lack of trading activity and market news.

Two ferro-manganese production issues in South Africa have been announced in two days and both have been blamed on low prices.

First, South32 – the company spun out of BHP Billiton earlier this year – announced it is delaying the restart of its Metalloys manganese alloys project, then Assmang said it is shutting a furnace at its Cato Ridge facility.

Assmang had already announced the shutdown of its Machadodorp manganese alloys smelter in February due to market conditions and rising production costs.

South32's decision was suspected in the market before it was confirmed, leading to rise in prices even before the announcement, sources told Metal Bulletin this week.

There is also a rumour that a third ferro-manganese supplier – not in South Africa – is experiencing production problems.

Some hope this will all be enough to boost prices for silico-manganese, but we’ve been hearing that sort of thing since December, so the jury’s out as far as Metal Bulletin is concerned.

None of this is good news for manganese ore suppliers, including South32, as the company has simultaneously said it is working to secure rail and port capacity for additional ore sales.

Manganese ore prices have fallen 30% since the start of the year on oversupply and poor demand.


Low grade prices have been inching up in South Africa since mid-May, but high grade prices have just retraced their recent gains.

Ferro-manganese has been performing better than most ferro-alloys. Supply is understood to be tighter than silico-manganese, the abundance of which suppliers are lamenting.

STEEL NEWS back to index

US steel output falls by 8.6pc in latest weekMetal-Pages 25/06/2015

Domestic raw steel production in the US fell by 8.6pc to 1.73mn net tons (nt) (1.56mn metric tonnes) in the week ending 20 June from the same week a year earlier, while capacity utilisation fell to 73pc.

Production was 1.9mn nt a year earlier, when capacity utilization was at 78.5pc, the American Iron and Steel Institute said. Production was down 1.2pc from the week ending 13 June, when output was 1.75mn nt and capacity utilisation was 73.9pc.

Year to date output though 20 June was 41.84mn nt at a capacity utilisation rate of 72.4pc. That is down by 7.4pc from 45.17mn nt during the same period last year, when the capacity utilisation rate was 77.3pc.Output in the latest week totaled 219,000nt in the northeast, 618,000nt in the Great Lakes region, 210,000nt in the midwest, 591,000nt in the southern region and 88,000nt in the west.

US steel imports hit by weak crude drillingMetal-Pages 25/06/2015

US steel imports fell by 3.6pc in May from the prior month, as low crude and natural gas prices affected demand for pipes and tubes used for oil and gas drilling.

Total imports fell by 3.6pc to 3.37mn net tons (3.05mn metric tonnes) from 3.5mn nt in the same month a year earlier, according to the American Iron and Steel Institute (AISI). Finished steel imports fell by 7.2pc to 2.74mn nt from the prior month.

Imports of oil country goods fell by 31pc to 166,221nt in May, AISI said. Line pipe imports fell by 24pc to 240,922nt and heavy structural shapes dropped by 59pc to 49,995nt. Shipments of reinforcing bars were off by 27pc to 152,578nt.

Year to date, total imports rose by 6.3pc to 18.6mn nt, AISI said, in its analysis of US Commerce Department data, which includes preliminary data for May. Imports of finished steel rose by 20pc to 15.4mn nt in the five-month period from a year earlier.

The import share of the finished steel market was 29pc in May, down from an estimated 32pc in the year-to-date period.

So far this year imports of oil country goods are down by only 0.2pc at 1.6mn nt, while shipments of ingots, billets and slabs were off by 31pc at 3.2mn nt. Line pipe imports are up by 67pc at 1.43mn nt and imports of hot rolled sheets are up by 12.9pc at 1.75mn nt.

Imports of finished steel from South Korea fell by 30.4pc to 355,000nt in May from April, but they were up by 28pc at 2.75mn nt for the five-month period.

Shipments from Japan fell by 18.5pc to 184,000nt in May from April but were up by 22.8pc at 1.05mn nt for the five-month period.

Imports from China rose by 2.8pc to 302,000nt in May from the prior month and were up by 3.3pc at 1.33mn nt for the first five months.


Imports from Brazil were up by 157pc at 611,000nt for the first five months, while shipments from Turkey gained 90pc at 1.45mn nt and cargoes from Germany were up by 40pc at 674,000nt for the five-month period.

Argentina auto sector slump bad news for raw material suppliersMetal-Pages 14/06/2015

A continued slump in Argentine auto industry demand has done nothing to lift the gloom for the steel mills and raw material suppliers that rely on the sector.

Argentina's auto market is seen an important market for steel producers, foundries and the ferro-alloys producers that supply them, not only domestically but also in neighbouring Brazil. Ferro-manganese, ferro-silicon, ferro-molybdenum, and ferro-niobium, as well as magnesium are used frequently in the manufacture of vehicles.

Argentine auto production fell 16.1pc in the first five months of this year compounding the problems suffered by steel makers and their raw material suppliers.

Against this background Argentina's steel production fell 14.9pc in May against the same month last year to 410,900t, trade body acero argentino reports. Output was up 7.1pc compared with April but down 10.4pc at 1.98mn t in the first five months of the year against the January to May period in 2014.

Brazilian auto production has also suffered on the back of a slump in Argentine auto industry demand with output down 19.1pc in the first five months of this year.

Despite the challenging climate and and economic slowdown at home, Brazilian steel production was up 3.8pc in May at 2.98mn t and 1.9pc higher in the first five months of 2015 compared with the same period last year at 14.3mt t, helped by demand for semi-finished products.

Global steel output down in MayMetal-Pages 22/06/2015

World crude steel production decreased on the year in May, by around 2.1pc to 139mn t. But output increased by around 3pc from 135mn t in April.

Chinese production fell by 1.7pc on the year to 70mn t of crude steel last month. Japan's crude steel output declined by 7pc year on year to around 8.9mn t, but this was up by 6pc from April. South Korean production dropped by 2.6pc to 6mn t. By contrast, India increased production year on year by 4pc to 7.68mn t in May.

Crude steel production within the EU was up by 0.7pc at 15.1mn t, despite a 5.4pc drop to 3.7mn t in output from Germany, the EU's single largest producer. Russian output slowed by 1.9pc to 6mn t, while Ukrainian production slumped by 23pc year on year to 2.2mn t in May, although that was up by 13pc from April. Turkey's production declined by 4.3pc to 2.9mn t in May.

US crude steel production dropped by 8.5pc on the year to 6.8mn t, although May production increased by 6.3pc from April. Brazil raised production by 3.8pc on the year in May, to around 3mn t of crude steel.Overall crude steel capacity utilisation in May was 72.1pc, down by four percentage points from April and by 3.4 percentage points from May 2014.

EU steel prices seen capped on looming imports - MEPSMetal-Pages 22/06/2015


Average steel prices in the European Union (EU) are expected to be capped in the near term on market expectation of imports from third (non-EU) countries, according to steel consultancy MEPS. Overall demand for flat products is reasonable in Western Europe, it said in its latest assessment of the EU steel market. Buyers are expecting the arrival of big quantities of third country material in the coming weeks of the northern hemisphere summer, particularly at ports in the south of Europe, MEPS said. After worries about the increasing impact of imports on the EU steel market, the European Commission has initiated an anti-dumping investigation into cold rolled coil imports from China and Russia. Metal-Pages reports on 33 minor metals. About one in four are used mostly in steel production and a number of others find applications in some of the more exotic speciality steel alloys. Of the eleven rare earth elements covered by Metal-Pages five of them are used as additives in various types of steels, and demand from steel makers is likely to increase as new alloying applications are developed. 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. Negotiations have started between the domestic mills and the car firms for second-half 2015 contracts, MEPS said. Producers want a price rollover from H1 2015, while carmakers are expected to ask for a cheaper prices as steelmakers’ input costs have dropped. Steel demand has held steady in Germany with business in the first six months of 2015 seen as acceptable, with leading demand from the car sector, MEPS said. Construction activity may be down slightly in H2 2015. Steel buyers are getting new offers from non-EU sources, although most buyers reckon the cost benefits are too slim when compared with long delivery lead times. However, they are aware that big import volumes are already on the way. There is also plenty of material available from domestic sources, MEPS said.

Nucor: Steel imports to depress profitsMetal-Pages 19/06/2015

US steelmaker Nucor cut its profit guidance for the second quarter, citing "exceptionally high levels" of imported steel that have depressed domestic prices.

North Carolina-based Nucor said pricing has "begun to stabilise" but it experienced some "margin erosion" in the latest quarter as falling sales prices outpaced declining costs of raw materials.

Imported steel accounted for about 32pc of the finished US steel market in the first five months of the year, compared with about 26pc in the same period last year. Still, the steelmaker noted that imports had decreased recently.

The operating performance of the downstream products segment has improved in the second quarter from the first quarter and the same period last year, reflecting gradual improvement in the non-residential construction market as well as seasonality in the market as the weather improved.

The raw materials segment, which includes Nucor Steel Louisiana, is expected to report an operating loss, reflecting the impact of working through higher-cost iron ore inventory that


was purchased last year. The segment, however, is expected to benefit from improved performance of its scrap processing businesses.

Nucor Steel Louisiana, which operates the newest Direct Reduction Iron (DRI) facility in the US, will see its operating loss narrow to about $20mn after a loss there of about $44mn in the first quarter.

The DRI facility has operated near full capacity since mid-April after resuming operations late in the first quarter following repairs related to the failure of the process gas heater on 2 November.

The performance of the DRI facility in Trinidad will weaken in the second quarter because of a 20-day planned outage in the latest quarter.

Nucor's mill output fell by 8pc to 4.76mn net tons (4.3mn metric tonnes) in the first quarter from a year earlier, the company said in April.

Nucor and its subsidiaries, including Harris Steel, the David J. Joseph Co, and Skyline Steel, produced more than 21.5mn mt of steel last year.

Higher capacity utilisation raises US steel outputMetal-Pages 19/06/2015

US steel production climbed by 1.5pc last week, as mills continued to increase capacity utilisation rates.Domestic raw steel production for the week ended 13 June was 1.74mn t, up by 20,000t from a week earlier, according to American Iron and Steel Institute (AISI) data.

The rise resulted from facilities operating at an average capacity utilisation rate of 73.9pc, 1.1 percentage points higher over the period.

But output was still 7.4pc down on a year earlier, when the mean rate was recorded at 78.5pc, the AISI said.

US steel production for the year to date stands as 40.1mn t, down from 43.2mn t last year. The utilisation rate is 4.9 percentage points lower at 72.4pc.

European steel outlook stable despite falling prices - Moody'sMetal-Pages 10/06/2015 Stable outlookLow steel prices will hurt profitability, particularly for steelmakers with big US exposure, according Moody's Investors Service in a report this week. However, volumes production persist in being supported on strengthening demand from the European car and construction industries, which together account for more than half of the area's steel consumption. Despite falling European steel prices, it said, steel used in the car industry and for mechanical engineering has been on an upward trend since the end of 2014 driven on firmer GDP growth prospects. "We expect apparent consumption will increase 1-1.5pc in 2015", Moody's analyst for European steel, Hubert Allemani, said in the report. Capacity utilisation has been mostly steady since the start of 2015.


Of around 80 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. Moody's reckons that steel capacity utilisation in the EU has been around the 75-80pc range, forecasted in the rating agency's September outlook. Some steelmakers are seeing a slight increase in production levels close to either side of 80pc. The ratio has been within Moody's range for a stable outlook and is expected to stay at that level in 2015. The average prices for European hot-rolled coil (HRC) and cold-rolled coil (CRC) products fell sharply from May 2014 to January 2015 and have since stabilised. Negative factorsHowever, weakening raw material prices, sluggish demand growth outside Europe and high levels of imports from Asia will put steel prices under pressure in 2015 with limited recovery prospects, it said. Moody's noted that iron ore prices (62pc Fe) have fallen sharply to current levels of around $60/t, from high levels of $135t in January 2014. They dropped to a low of $50t in April 2015. The fall is due mostly to decreasing domestic Chinese steel production combined with increasing production from the major mining companies. Moody's will move the outlook to negative if the eurozone output Purchasing Managers' Index (PMI) falls below 50, which indicates a contraction, for at least three consecutive months and the capacity utilization rate falls below 75pc. Conversely, the rating agency will move the outlook to positive if the PMI exceeds 55 for at least three consecutive months and capacity utilization rate rises to more than 85pc. An indicator of the economic health of the manufacturing sector, the PMI index is based on five major indicators: new orders, inventory levels, production, supplier deliveries and the employment environment.

Long steels markets set to cement strengthening stabilityMetal-Pages 09/06/2015 Long steelsProduction cuts, increasing raw materials prices and slowly strengthening demand are cementing support for the cost of long steels, a key consumer of silico-manganese and other alloys, in the coming weeks, according to a monthly outlook from European steel body IREPAS This is despite the potentially shaky influences of erratic currency movements and political uncertainties in countries such as Greece, which is struggling with very heavy debt levels, it said in its report. Long steels are typically used to make finished products such as wire mesh and reconditioned bar (rebar) that are then used in the construction sector. "It seems that the general trading atmosphere has been slightly better in the world long steel market," it said. "The strengthening of the Russian currency and the reduced influx (to the West) of Chinese steel to other markets are having an impact." More steel supply reductions are expected, while Chinese steel export levels may drop in the second half of 2015, the report said.


The European long steel products market is stable as demand has been picking up slightly. Domestic European long steel suppliers are adapting to demand, while the weakened euro and anti-dumping threats are reducing buying interest in imports. The stable pricing policy of European suppliers has also reduced such interest. The (steels) industries seem to finally be dealing with overcapacities through the supply chain, IREPAS said in the report. Scrap processors are idling unprofitable facilities in the Western world, and steel-making capacities are being brought to a better equilibrium with demand. The adjustment will take a long time, but we at least see some signs of it happening. World steel output also fell in April on year-on-year basis – overall and in major areas such as China. "That is a clear sign that the industry is adjusting supply to demand, and that decisions are being taken to make business sustainable," it said. With the US economy not moving as fast as originally forecast (negative GDP growth in Q1), steel buyers in the US market are very cautious. Although inventories are low, no one wants to increase their inventories. Still, the recent increases in iron ore prices back to the level of $60/t, along with ferrous scrap price increases, have seen renewed steel demand, IREPAS said in its report. Buyers are less cautious and returned more to their "normal cycle of purchases", which has cut the imbalance in supply and demand. The long steels market has also benefited from news the US Federal Reserve will not be increasing interest rates until September.

LME delays launch of new steel contractsMetal-Pages 09/06/2015

The London Metal Exchange (LME) has postponed the launch of its LME Steel Scrap and LME Steel Rebar cash-settled ferrous contracts, it announced yesterday.

The launch has been deferred to 23 November from 26 October, to coincide with the next release of LME's clearing platform, LMEmercury, following members' requests.

The rebar and scrap futures will complement LME's existing steel billet contract and will use the Platts Turkish rebar exports fob Turkey price assessment and the TSI HMS 1-2 80:20 cfr Iskenderun price assessment as their respective bases.

LME is one of the largest futures exchange for metals, and is best known for non-ferrous and base metal trading.

India imposes anti-dumping duty on stainless steelMetal-Pages 09/06/2015

India has levied anti-dumping duties on import of stainless steel hot-rolled flat products from China, South Korea and Malaysia.

The duties have been levied in three slabs of $180/t, $309/t and $316/t. Export of these goods have occurred below their normal value, affecting the interest of domestic producers, India's finance ministry said.

Stainless steel is a small portion of the total steel output in India, accounting for 3.6pc of crude steel output in 2012-13, the latest year for which data is available. India's saleable


steel output was 90.56mn t for the 2014-15 fiscal year ending 31 March, with imports at 9.32mn t and exports of 5.5mn t.

The anti-dumping probe occurred after complaints from the country's largest stainless steel producer, Jindal Stainless.

The tariff is a disappointment for the steel sector, which has been seeking higher import duties across steel products. Delhi left import duties on steel unchanged in the federal budget on 28 February.

Large volumes of imports from China, Russia, Japan and South Korea are putting pressure on margins, steel mills said, at a time when private-sector and state-controlled companies are investing to expand production capacity through expansions and new projects.

OHES & SCIENCE back to index

OTHER back to index

EMM back to index

Manganese prices lose ground in China after one-month uptickMetal-Pages 25/06/2015

Chinese manganese prices have fallen by RMB50/t in the past two days amid thin buying in depressed market conditions after a month of uptick.

Market participants also reported that a key producer is trying to dump stocks at lower prices in the gloomy market.

With the approach of the slack summer season, some stainless steelmakers are about to cut production or shut down for maintenance, but some manganese producers are planning to restart production later this month. Wujiang Shiye Group has scheduled resumption of production at the end of this month. The company halted daily output of 60t in the middle of May.

On the spot market limited deals were concluded. Key stainless steelmakers are likely to issue tenders next week, which will show a clearer price trend.

Prices started to rebound at the end of May with an increasing number of producers halting production.

Europe Mn flake market eases amid quiet demandMetal-Pages 23/06/2015

European manganese spot flake prices have eased in the past week amid slow business conditions, paring some of the gains made on short covering earlier this month. The current flake price in Europe is virtually nominal given the current scarcity of business, which if anything will slow even further this July, traditionally the quietest month of the year when workers in heavy industry go on vacation. The current spot price range in Europe is off $25/t, according to the Metal-Pages' last assessed data on 23 June.


Material is due to arrive from China, the key supplier to Europe, in mid-July 2015. Those shipments were contracted in early June 2015, according to dealers. Heavy industry will be particularly quiet in July as most steelmakers will cut of shut production for 2-3 weeks to do maintenance and repair programmes. July is usually when most workers at the plant go on summer vacation in Europe. Very few spot deals are expect in July, according to industry sources. Manganese lump, however, is in short supply and selling at a premium of at least $150/t, even as high as $180-200/t for prompt, sources said. Manganese briquettes are more readily available at available at a premium of $100 or so above the current flake market price range. China slowsChinese export prices have softened in the past few days. Chinese domestic flake prices have stabilised despite thin spot business, probably due to falling production. POSCO, the biggest manganese consumer in South Korea, issued its tender price for manganese flake last week, $175/t up on the tender before in May. POSCO is buying some 3,000t, from 4,000t before. The recent stronger trend in Chinese prices has slowed in the run-up to the typically slacker summer run rates at producers, some of which are set to resume output in the coming days.

Mn flake prices stabilise in ChinaMetal-Pages 23/06/2015

Chinese manganese prices have stabilised amid thin spot business and falling output, and most key buyers completed their monthly purchases last week.

POSCO, the largest manganese consumer in South Korea, issued its tender price for manganese flake last week, $175/t higher than the previous purchase in May. Their purchasing volume is around 3,000t compared with 4,000t previously.

On the spot market, producers are holding firm on prices for flake with few deals, and the price uptrend is showing signs of losing steam with the approach of the slack summer season. Some producers are planning to resume production later this month. Wujiang Shiye Group has scheduled resumption of production this week with output of 60t/day in Guizhou. The company had halted production in the middle of May.

Prices started to rebound with an increasing number of producers halting production in late May after two months of decline.

Mn flake prices edge up in China, outlook uncertainMetal-Pages 16/06/2015

Chinese manganese prices have continued to increase amid production cuts in China. But the market has been slow as most key producers have completed their monthly purchases.

A Guizhou-based producer’s capacity utilisation is around 30pc due to low prices, and the company is holding firm on offer prices for flakes this week in spite of the slow market.

There are only 26 producers operating in China at the moment, according to a report from the National Fellowship Association of Electrolytic manganese Metal (EMM) Factory Managers. Of those, 16 are operating at 30-50pc capacity and their daily output was below 250t, compared with 78 producers running in December 2014


Most smaller producers without in-house ore mines halted production or halved output in 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.

However, with prices rebounding in the past two weeks, some producers are planning to resume production later this month, which may cap the price upturn. Wujiang Shiye Group has scheduled a production restart next week with output of 60t/day. The company halted production for equipment maintenance in the middle of May.

Prices started to rebound in May after two months of decline.

Chinese selenium dioxide market rebounds on stronger Mn pricesMetal-Pages 09/06/2015

The selenium dioxide market in China has ended six months of falling prices and has rebounded in the past few days, as producers have stopped cutting prices in response to an uptick in the manganese market.

Metal-Pages last assessed prices for 98pc grade selenium dioxide on 9 June up RMB5/kg from last week.

Dioxide producers have rejected low prices after manganese prices gained ground. The manganese market has extended the uptrend in the past two weeks with prices up, supporting dioxide prices.

But manganese producers have not shown interest in increasing production as business is usually tepid in the summer slowdown, and the consumption of dioxide is expected to be limited.

Prices for selenium 99.9pc grade have been stable. The market has seen surplus supply with total imports in the first four months up 25.66pc to 622,672kg, compared with 495,504kg in the same period a year earlier.

EMD back to index

Why Lithium Isn’t the Big Worry for Lithium-Ion BatteriesGreentech Media 23/06/2015 Cobalt and nickel bottlenecks are a much bigger threat.

Lithium-ion battery production is more likely to be constrained by cobalt or nickel supplies than by lithium availability, experts believe.

Li-ion battery makers use both metals in greater quantities than lithium, which has been the subject of significant supply concerns as battery production ramps up. In fact, none of these minerals are worryingly scarce in nature.

What troubles some observers, however, is that cobalt and nickel are susceptible to greater supply-chain risks because of the countries that control the resources.

“It's not a physical scarcity risk, but there are supply risks that could affect the price not just of lithium but also cobalt, manganese and nickel. They are very important materials, depending on the chemistry," said Logan Goldie-Scot, head of energy storage analysis at Bloomberg New Energy Finance.

Cobalt in particular has a precarious supply chain since half the current reserve comes from the Democratic Republic of Congo, where there is “an uncertain legal framework, corruption and a lack of transparency,” according to the CIA World Factbook.


Although the country is becoming more stable and improving in terms of economic development, it has a long history of conflict, and national elections next year could prove a flashpoint if the current president, Joseph Kabila, refuses to step down as required by law.

Meanwhile, according to Goldie-Scot, “Nickel is spread across a wide group of countries but the market remains vulnerable to the actions of just a few of these. In January 2014, Indonesia banned exports of nickel, which caused the price to rise from $13,000 a ton to $21,000.”

Manganese is similarly subject to price variations based on supply.

This month, MetalBulletin reported European ferro-manganese prices “shot up” following supply shortages announced by two South African mining concerns, South32 and Assmang.

Lithium also could face supply chain crunches. Although it is widespread in nature, about 70 percent of economically accessible supplies are found in just three countries: Argentina, Bolivia and Chile.

This concentration has sparked fears that lithium supply constraints could stunt Li-ion battery growth. But experts consider this unlikely because the three countries have differing political agendas and so far do not seem keen on hampering exports.

If anything, Bolivia appears to be encouraging further exploitation of its reserves, in concert with foreign investors.

At the same time, companies such as Simbol Materials in the U.S. and Cobre Montana in Australia are moving to develop new ways of exploiting currently uneconomical reserves outside of Latin America.

Consequently, said Goldie-Scot, “our view is that there really isn't a near- to medium-term lithium scarcity.”

In any case, said Alexis Georgeson, senior public relations representative at Tesla, lithium only plays a minor role in that company's batteries. “The cells in Tesla batteries are primarily metal oxides composed of nickel and aluminum, and to a lesser extent cobalt,” she said.

“Carbon and steel are also featured. The lithium content is actually a small amount by weight, and contributes a correspondingly minor part of the cost of Li-ion batteries. Our batteries really should be called nickel batteries," said Georgeson.

For now, Tesla is definitely not worried about lithium availability, Georgeson confirmed. “There are more than enough reserves of lithium world-wide to serve the growth of the battery markets, including Tesla's projected needs,” she said. “Even if we wanted to build 10 or 20 Gigafactories, we would not have to search beyond the known reserves that can be economically mined.”

Tesla also expects to source an increasing amount of the material through recycling as battery production ramps up. “The Tesla Gigafactory will incorporate onsite recycling,” Georgeson said.

“All the materials and components in our Li-ion cells can be recycled or otherwise safely disposed of. We are working with our suppliers to implement even further efficiencies for Gigafactory production.”

Minerals experts highlighted the growth prospects for cobalt, rather than lithium, in the wake of Tesla’s Powerwall announcement.


“When it comes to investing in the future of commodities, forget about resources such as iron ore and coal, which dominated the industrial economies of the old world order,” wrote Andrew Critchlow, commodities editor for the Daily Telegraph in the U.K.

“The new currency for smart commodity investors will be cobalt, which is poised to play a growing role in everyone’s life if the vision of American billionaire Elon Musk to have a Tesla Motors battery powering homes comes to fruition," he said.


manganese · web viewthe conference is devoted to analysis of the current situation and...

Documents