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Eramet update on Manganese division in Q3

Metal News - Published on Tue, 06 Nov 2018

Image Source: SteelGuru
Eramet announced that in Q3 2018, sales for the Manganese division (excluding Mineral Sands activity) ended at EUR 456 million, down 3% versus Q3 2017, penalised by a negative volume effect in manganese ore sales. Gross global production for carbon steel, the main end-product for manganese, increased 4.6%6 during the first nine months of the year versus the same period for 2017 (+4.8%6 in Q3), sustained by demand in China (+6.1%6) but also Europe (+1.3%6) and India (+6.1%6).

Manganese ore supply/demand remained balanced, with the strong demand absorbing the continually high level of production, particularly in South Africa. At end-September, ore inventories in Chinese ports are stable at 2.8 million tonnes versus end-June 2018.

Average manganese ore CIF China 44% prices remained at a high level at USD 6.83/dmtu during the quarter, up 11%7 versus Q3 2017, but down 7%7 versus the first half of the year. However, manganese ore CIF China 44% spot prices rebounded above USD 7/dmtu in early October.

In Gabon, COMILOG reached a new production record at 1.2 million tonnes of ore during the last 3 months, posting production of 3.2 million tonnes year-to-date at end-September, up 4% versus the comparable 2017 period. However over the same period, the volumes of ore transported were limited to 2.9 million tonnes, down 6% versus 2017, owing to two train derailments during the year (in February and July). External ore sales were thus down 4% at 2.3 million tonnes.

The use of additional railway trains from end-August enabled to achieve record transported volumes in September and partially reduce the shipping delays due to the two derailments. The announced objective of maintaining a record level of more than 4.1 million tonnes of ore transported in 2018 is confirmed.

In Q3 2018, manganese alloys’ prices declined in Europe versus Q3 2017, with a sharper erosion for refined ferromanganese (-13%7). This is reflected in the continued squeeze effect on manganese alloys’ margins, which is weighing on 2018 results compared with previous year.

Manganese alloys’ production increased in Q3 2018 (+3% versus Q3 2017), as did sales volumes (+2% during the period), reaching 516 kt year-to-date at end-September.

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Posted By : Rabi Wangkhem on Tue, 06 Nov 2018
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