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27 January 2010


TEX review of manganese ore in 2009 and outlook for 2010

Source: TEX Report

TEX reported that, in order to cope with a global reduction in production of crude steel, major manganese mines had quickly taken their countermeasures for this negative aspect. The three major mining companies of BHP Billiton, Assmang and Eramet entered into a considerable reduction in their production of manganese ore from January to March quarter of 2009.

This structure to reduce production of manganese ore adopted by these mines had continued until July to September quarter at least and this reduction in production of manganese ore during January to September of 2009 reached 50% of that produced in the same period of 2008. In comparison with the world production of crude steel in 2009, which had a decrease of 11% from that in 2008, this reduction by 50% in the world output of manganese ore for 2009 was remarkably large.

According to the data compiled by International Manganese Institute, the world output of manganese ore was 12.77 million tonnes in 2007, up by 9.1% YoY and 13.85 million tonnes in 2008, up by 8.5% YoY, having indicated a steady growth.

China is the largest market for manganese ore in the world and produced 570 million tonnes of crude steel in 2009, having maintained a basic tone to increase steel production, but the output of crude steel in all of the western countries for 2009 had a decline. However, when the quantities of manganese ore produced by major manganese mines in January to September of 2009 are compared with those produced in the same period of 2008, BHP Billiton: decreased by 55.3%, Assmang: decreased by 42.2%, Vale: decreased by 41.3% and Eramet: decreased by 58.7%, having shown a decline in production of manganese ore by all of them.

Major manganese mines had taken a severe countermeasure for the depressed market of manganese ore as their characteristic but this arrangement is evidence that these major mines had made a strenuous effort to maintain prices of manganese ores.