Driven by the revival of the infrastructure industry, the increased demand for steel worldwide is driving the global manganese market as well. The demand is exceptionally high in the developing nations, with the Asia Pacific region accounting for the highest consumption of manganese. Analysts are of the opinion that the region’s demand is set to grow at 7.5% to 8% annually.
Other than the steel industry, which is the traditional user of manganese, the battery industry is also driving the manganese market. Lithium manganese batteries are expected to be the answer for the need for high capacity and low cost energy storage devices.
Both factors are essential for the success of emerging technologies in areas such as renewable energy, consumer electronics, and electric vehicles.
Mr Jonathan Lee battery technology and materials analyst for Byron Capital Markets said that China produced 1.4 million tonnes of the metal in 2010 and non Chinese production of electrolytic manganese was only about 34,000 tonnes. He added that "With electric vehicles, our estimates are by 2020, we see a need for 80,000 to 90,000 tonnes of manganese for electric vehicles."
As manganese battery technology improves, the efficiency of electric vehicles is expected to improve as well. This will naturally increase the demand for both. Also, the potential of manganese based batteries in mobile technology is very high and that could lead to a much higher demand for manganese.
Nations have now turned their attention to the ocean floors and the Atlantic is being actively explored for minefields. Deposits of precious and rare metals have reportedly been discovered at a depth of about 4 kilometers on the ocean floor. The discoveries are naturally creating a great deal of interest among geologists.
Mr Vladimir Kryukov director of Russia's Polar Marine Geological Prospecting Expedition said that "China has already made a claim to this end, whereas France, Germany and England are actively engaged in searching for these ores that rank among such promising natural resources as manganese and cobalt. Russia, by the way, owns and explores a manganese field in the Pacific Ocean. Now we are preparing our bid to the UN concerning cobalt deposits."
The 20% export duty imposed by China electrolytic manganese has been creating more concerns than relief for Chinese authorities. China has been collecting the export duty January 2008 but recent reports indicate that certain quantities of the metal seem to be evading this duty and are being sold in Asian and European markets.
This is creating a price pressure on the formally exported electrolytic manganese that has incorporated the export duty in its prices.
Another issue dogging China's electrolytic manganese sector is the fact that China's export records do not match the import records of Japan and South Korea. This mysterious phenomenon is causing Chinese exporters a great deal of anxiety since it substantiates the suspicion that large quantities of Chinese electrolytic manganese are successfully evading the export duty and taking advantage of the price difference.
(Sourced from Critical Strategic Metals)
