According to the data compiled and released by IMnI, the world output of manganese ore in the calender year of 2010 recorded 47 million tonnes on wet weight base which had a considerable increase of 32.4% compared with that in the preceding year of 2009 and, also exceeded that produced in the world for 2008.
The movements on global production of manganese ore in 2010 were that, in order to take back a considerable reduction in the world production of manganese ore in 2009, the activities to produce more manganese ore were substantial during a period of January to March quarter to July to September quarter of 2010, having resulted in a basic tone to increase the world production of manganese ore in 2010. Also, the stocks of manganese ore stored at manganese producers in 2010 had lowered.
However, while China is the largest country in the world to consume manganese ore, the stocks of manganese ore stored at wharves in China have suddenly increased to a large extent from October to December quarter of 2010 and have had an excess. Under the circumstances, major manganese mines of the world have turned to adjust their supply position of manganese ore.
On the basis of settlements of accounts for the calendar year of 2010 released by 6 major manganese mining companies of the world, the total quantity of manganese ore produced by these six major companies in 2010 had recorded approximately 17.1 million tonnes on material base having shared 36.4% of the world output. Many of the six major companies have been producing mainly high grade manganese ore.
On the other hand, the quantity of manganese ore to be consumed by China is thought to put a considerable influence on the global supply situation of manganese ore. According to the customs statistics released in China, this country imported 11.6 million tons on material base of manganese ore in 2010 having shared 58% of that traded in the world for 2010. For a reference, the shares in imports of manganese ore by other countries than China in 2010 were 5% by Japan, 6% by Norway, 5% by South Korea and 5% by India.
Apart from manganese ore imported by China from overseas countries, China produces manganese ore at their local mines and the quantity of manganese ore produced in China for 2010 is estimated at 3.1 million tonnes on Mn content base. The quantity of 11.6 million tonnes on material base imported by China in 2010 had corresponded to 5.1 million tonnes on Mn content base and, therefore, the apparent total demand for manganese ore in China is presumed to be 8.2 million tonnes on Mn content base, having relied a 62% of the demand for manganese ore on the imports. The quality of manganese ore produced in China is low grade ore, containing 15 25% of Mn, and a 50% of this low grade manganese ore produced in China has been delivered to the plants to produce electrolytic manganese metal in this country.
China produced 3.4 million tonnes on Mn content base of manganese ore in 2008 but in order to ensure a safety of operations at mines and to control an environmental pollution, the Central Government of China has moved to strengthen the regulations for production of manganese ore and, accordingly, there is a big probability to deepen a reduction in domestic production of manganese ore in China. In addition, manganese ore produced in China has inclined to become a lower Mn content and to dry up the reserves.
The stocks of manganese ore stored at wharves in China had increased to 3,950,000 tonnes in the middle of May of 2011 having shown a power to approach a level of 4 million tonnes but decreased by 280,00 tonnes on the end of May. Therefore, the huge stocks of manganese ore in China have at last indicated a direction to decrease in 2011. Nevertheless in the course of time, the unit price of manganese ore imported into China was USD 7 per Mn 1% CIF on the average and when the 10% strengthened exchange rate of Chinese Yuan against US-Dollar has taken into account, the cost of manganese ore stocked in China as mentioned above is supposed to be fairly expensive.
Major manganese mines of the world had reduced twice their price of manganese ore sold to China for shipments in the first half of 2011 and consequently, the price of medium grade manganese ore settled with China for June shipment has fallen to USD 5.30 per Mn 1% CIF. In view of the facts that the speculative purchases of manganese ore by traders are retreating and a substantial reduction in production of manganese ore has been implemented by manganese mines, the so called excessive stocks of manganese ore in China are anticipated to have a strong possibility to be in the direction to decrease.
