South Africa: Ferro alloys exports stable in May’22

South African exports of ferro alloys remained stable at 3.15 million tonnes (mnt)  in May 2022, compared to 3.14 mnt in April 2022. Ferro alloys exports were stable due to a decline in manganese ore and ferro manganese demand. However, silico manganese and chrome ore demand increased, which allowed ferro alloys exports to remain stable.

Manganese ore
Exports of manganese ore fell by 7% m-o-m in May 2022 to 1.74 mnt versus 1.86 mnt in April 2022. However, on a y-o-y basis, exports increased by 5% to 9.23 mnt. In May 2022, China imported 1 mnt, down 5%, followed by India at 0.22 mnt, down 50%, South Korea at 0.03 mnt, and Japan at 0.08 mnt, up 82%.

Silico manganese
Silico manganese exports increased by 27% m-o-m to 4,406 t in May 2022 against 3,466 t in April 2022. Low inventories in China and other major importing countries led to a rise in exports. However, on a yearly basis, exports decreased by 19% to 56,154 t in January-May. Major importing countries for South Africa were Italy with 1,999 t, followed by Sweden with 999 t, and Spain, 864 t.

Ferro manganese export
Exports of ferro manganese decreased by 69% m-o-m to 4,855 t in May 2022 against 15,593 t in April 2022. Meanwhile, on y-o-y  basis, exports dropped by 23% to 49,852 t from January to May. Major importing countries were Germany, Italy and Australia in May 2022.

Chrome ore export
Exports of chrome ore surged by 15% m-o-m to 1.125 t in May against 0.981 mn t in April 2022. Meanwhile, on a yearly basis, exports inched up 1% to 6.02 mn t from January to May 2022. Major importing countries for South Africa were China, Mozambique followed by Hong Kong, and Indonesia.

Ferro chrome
Exports of ferro chrome inched up by 0.5% m-o-m to 0.278 mnt in May against 0.277 mnt April 2022. However, on a yearly basis, exports decreased by 23% to 1.429 mnt from January to May. Major exporting countries were China, Mozambique, and Japan.

Outlook

The manganese ore imports market is in wait-and-watch mode, owing to uncertain market sentiments. Some manufacturers have reduced production of manganese alloys, which might reduce export volumes in the coming months.

The chrome ore market may continue to remain stable in the short term due to a balance in demand-supply.