TEX reported that the total quantity of manganese ore produced by seven major manganese mines of the world in the first quarter (January to March) of 2011 had a decline after a long interval. The global output of manganese ore revived in 2010 from a substantial decrease as seen in 2009 and, reflecting an incidental expansion in the world production of crude steel, the total output of manganese ore by major manganese mines in 2010 had a considerable increase of 53% compared to that in 2009.
However, the total quantity of manganese ore produced by 7 major mines in January to March quarter of 2011 had come down to 3,654,000 tonnes (partially including an estimation), which decreased by 9.2% compared to that in the same quarter of 2010.
Namely, owing to an abnormal weather occurred in Australia and the troubled mining conditions arisen in South Africa, the quantity of manganese ore produced by BHP Billiton, the largest manganese mining company in the world, in January o March quarter of 2011 had a substantial decline of 20% from that in the same quarter of 2010 and this reduction had put a large influence on the global output of manganese ore in the first quarter of 2011. This considerable decrease in production of manganese ore at BHP Billiton in the first quarter of 2011 had been caused by the factors as mentioned above and it is still not known yet whether BHP Billiton will intentionally reduce their production of manganese ore in April to June quarter to rally its price or not.
However, the international price of manganese ore has fallen by 18.5% in the course of the beginning of this year up to present time and the soil has softened. In view of a balance on supply and demand of manganese ore, a necessity for manganese mines to reduce their production is going to come up to the surface. Particularly, China is the largest country in the world to import manganese ore but a serious problem of manganese ore is occurring in this country. That is the excessive stocks of manganese ore stored in China.
The quantity of manganese ore imported into China and stocked at wharves in discharging ports has totaled to 3,930,000 tonnes as of the end of last week, corresponding to the scale to be successively imported by China for 4 months. This volume of the stocks is clearly an excess and there is a strong opinion in the market that, when the regulations for supply of electric power are enforced again in China, it will be necessary to adjust sooner or later the quantity of manganese ore to be supplied to China.
Under the circumstances as mentioned above, it has been marked to see the quantity of manganese ore to be produced in the world for the calendar year (January to December) of 2011 but, as far as the output of manganese ore in January to March quarter of 2011 is concerned, the planned reduction in production of manganese ore has been not smelt. The background is that a tide to increase steel production on the worldwide scale is still continuing, mainly in China.
(Sourced from TEX Report Limited)
