China’s manganese ore imports in 2019 are likely to surpass 32.5 million tonnes, higher by nearly 18% from last year, according to Yang Yufang, China representative of the International Manganese Institute, addressing delegates at the 10th China Ferroalloy Industry Conference held on Thursday in Hangzhou, East China’s Zhejiang province.
In fact, the country’s manganese ore imports already reached a record high last year of 27.6 million tonnes, up by 30% from 2017, mainly as demand from domestic ferroalloy smelters increased markedly while the availability of domestic ores declined, according to her.
Last year, domestic demand for manganese alloys was significantly boosted by the high-level of steel production, as well as the introduction of new and stricter national criteria for rebar production which officially took effect from October 1, 2018, and which mandated increased manganese alloy content to improve rebar strength and performance, Mysteel Global notes.
“(More demand from) China was the crucial driving force in boosting manganese ferroalloys supply worldwide,” Yang concluded, adding that global Mn alloys output had increased for three consecutive years and reached 22 million tonnes as of 2018, up by 11% on year.
Most exporters of manganese ore increased their ore deliveries to China over this year’s January-August period, with those from new supplier Myanmar soaring by 180% on year, Yang said without providing actual tonnage. Only Malaysia’s exports to China declined, slipping by 19% over the first eight months this year, mainly due to the higher local consumption, according to her. Over the past few years, several foreign-invested smelters have been commissioned in Sarawak in East Malaysia, as Mysteel Global has reported.
In September, China’s imports of manganese ore contracted for a second straight month, falling by 6% from August to reach 2.75 million tonnes, a decline which industry watchers attributed to the persistent weakness in the domestic manganese ore market [see other article]. However, the January-September total was nonetheless higher by a substantial 27% on year at 24.4 million tonnes, Customs data showed.
The rise in manganese ore imports has seen stocks of ore at domestic Chinese ports also mount since the beginning of this year, Yang suggested. In September, Mn ore inventories at Chinese ports surpassed 4 million tonnes, a new high since June, according to the figures she provided.
Accordingly, domestic manganese ore prices have also been steadily losing ground since November 2018, with Mysteel’s pricing index of South Africa-origin 36.5% grade manganese ore, for example, being assessed at a 27-month low of Yuan 39.1/dmtu ($5.5/dmtu) at North China’s Tianjin port as of October 23, down by 7.8% on month or a steeper 31% on year, Mysteel’s data showed.
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