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General review of manganese metal in 2010 and its outlook for 2011
Time 2011-02-15 Author Website Manager Browse QQmessage 产品咨询 Tel:0086-371-55611696

General review of manganese metal in 2010 and its outlook for 2011

Manganese metal flake for alloy

 

The annual quantity of electrolytic manganese metal produced in China has shared a 98% of the world output. The fluctuation of price for Chinese electrolytic manganese metal in 2010 had been fairly restricted in comparison with the movements in the past years, when price of this metal had terribly risen and fallen.

Nevertheless, the maximum extent of fluctuation on price of Chinese electrolytic manganese metal in 2010 was 30%, which had still shown a high volatility of the price compared with those of other metals and a lack of the stability as a raw material for steel production. This problem of price for Chinese electrolytic manganese metal has been caused by the composition in production of this metal in China and the Central Government of China has moved to regulate too many producers of electrolytic manganese metal but the effectiveness is so far unable to come out.

More than 200 medium and small companies have been producing electrolytic manganese metal mainly in the so-called Manganese Triangle Zone, comprising of Hunan Province, Sichuan Province and Chongqing Municipality, and also in Guizhou Province and Guangxi Zhuang Aut. Region but these producers are always suffering from the excessive facilities for this production. This composition to produce electrolytic manganese metal in China has caused to arise hard competitions between these medium and small producers and resulted in an elevation of the volatility for price of this metal A differential of prices between that in normal year and that in the depressed year of 2009 shrunk to US$500 per ton but that in 2010 enlarged to US$1,000 per ton..

In order to enforce the countermeasures for environmental pollution and the policy to save energy consumption, the Central Government of China has decided to implement the followings ; (A) To control new producers with an intention to launch production of electrolytic manganese metal (new enterprises planned to produce electrolytic manganese metal on a scale of less than 10,000 tons per annum are not approved), (B) To scrap down the facilities installed at the existing small producers (with capacity of less than 4,000 tons per annum), and so on. Therefore, Chinese producers of electrolytic manganese metal have been severely regulated. For the purpose of reducing the volume in exhaust of carbon dioxide (by 20% against GDP), the supply of electric power in China was cut from October of 2010 and the quantities of electrolytic manganese metal produced in Guangxi Zhuang Autonomous Region and Guizhou Province were reduced.

Even though the volatility on price of Chinese electrolytic manganese metal slowed down in 2010, the movements of price for electrolytic manganese metal in China recorded a low price of CNY 14,800 per tonne in May but a high price of CNY 19,200 per tonne in October. Also, China revived to export electrolytic manganese metal on a scale of 220,000 to 230,000 tonnes per annum and, reflecting a rise of price for this metal prevailed in domestic market of China, the price of electrolytic manganese metal exported from China in 2010 had bottomed out by USD 2,800 per tonne in May to June. After that, the price of this metal for export rose to a high price of USD 3,800 per tonne in November.

The reasons, why price of Chinese electrolytic manganese metal soared in October to November of 2010, were due to (1) owing a lack of the safety in operation at mines to produce manganese carbonate in Hunan Province, the regulations to stop mining and the guidance to operate safely were strengthened, (2) Guangxi Zhuang Autonomous Region and Guizhou Province are main bases to produce electrolytic manganese metal in China but the supply of electric power to these two main bases were temporarily stopped from October of 2010 (in line with the regulations for exhaust of carbon dioxide), and (3) the sales of electrolytic manganese metal from other provinces to the triangle zone were imposed by tax.

The exports of electrolytic manganese metal produced in China had come down to the worst case in 2009 (exported 160,000 tonnes) but strongly revived from the beginning of 2010 by an increase of 40% from that in 2009. However, the reality exported Chinese electrolytic manganese metal on a scale of 20,000 tons per month, which was still unable to reach the exports in the best year of 2006 (shipped 338,000 tonnes on an annualized base). Japan and South Korea were previously the important countries to import electrolytic manganese metal from China but the recent exports for these two countries were not possible to achieve that materialized in the best time. Therefore, it seems to be impossible to come again the case in 2006. Such countries as Japan and South Korea, where were once main importers of Chinese electrolytic manganese metal, have been currently using high purity ferromanganese with less impurities produced by themselves and have been progressing to shift the item to be used.

In order to sell electrolytic manganese metal in Europe, China has still kept the stocks of this metal at warehouses in Rotterdam of Netherlands but the exports of electrolytic manganese metal from China to Rotterdam in 2010 decreased by 10% compared to that in 2009, having shown a delay of the recovery.

On the other hand, while electrolytic manganese metal is mainly consumed by stainless steel mills in China, the output of crude stainless steel in China for 2010 achieved 11 million tons, having had a substantial increase of 21% compared with that for 2009, and the production of 200 series stainless steel, containing more Mn, shared 17% to 19% of the whole output and, as far as the production of stainless steel in China is concerned, the demand for stainless steel products from domestic market of China has been increasing steadily.

For a reference, Manganese Metal Co (Pty) Limited of South Africa, which is a subsidiary company of BHP Billiton and has been producing electrolytic manganese metal in South Africa, was judged by BHP Billiton to be out of the core enterprises and became the objective company to be sold. From this point of view, BHP Billiton sold 51% of the shares of Manganese Metal Co. in summer of 2010. The new owners, having acquired 51% of the shares, are Mr Bernad Swanepoel and Mr Anton Taliaard, who are businessmen in South Africa. These two new owners came to Japan in September of 2010 and held a reception at Imperial Hotel in Tokyo. Manganese Metal Co is only the producer of electrolytic manganese metal in the western world, which has been producing mainly special grades (high purity, selenium free, and so on) of electrolytic manganese metal, and will maintain the policy to produce electrolytic manganese metal on a scale of approximately 30,000 tonnes per annum.
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