After a miserable year in 2009 when major manganese producers slashed supply to match the much reduced demand from the steel industry, there are better prospects on the horizon for 2010.
As with non-metallurgical grade chromite, manganese dioxide prices are influenced by the comparatively huge market for metallurgical grade ore prices, and as such an improvement in prices will probably be reflected as contracts come up for renewal.
Globally manganese production fell by some 28% in 2009 to an estimated 9.6m. tonnes, down from 13.3m. tonnes in 2008, according to the US Geological Society (USGS).
Leading producers in South Africa, Australia, Gabon and Brazil all cut back significantly in an effort to match the reduced market place.
Significantly, Chinese production actually rose to 2.4m. tonnes, ranking it as the world’s leading producer for the first time. It is also the world’s largest importer,...