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Supplies to drive Mn as steel demand persists: South32

  • Spanish Market: Metals
  • 20/08/20

The manganese ore market outlook to mid-2021 is likely to be reliant on supplies as alloy demand from the steel industry remains buoyant, according to Australia-based diversified resources firm South32.

The long-term price of manganese ore will be set by marginal South African supplies transitioning underground over time, South32 said along with its results for the July 2020-June 2021 fiscal year.

South Africa's supply disruption and recovery have driven prices this year, with prices surging when mines were closed with Covid-19 lockdowns and then reverting back to the marginal cost of trucked manganese ore when mines resumed production. South Africa accounts for around 40pc of global manganese ore output and is the world's largest exporter.

South32 produced a record 3.47mn t of manganese ore in 2019-20 and has issued an output guidance of 3.5mn t for 2020-21. Its South African output was 1.87mn t in 2019-20, which is forecast to rise to 2mn t in 2020-21.

The firm attributes an alumina price rise of around 20pc since April to higher Chinese imports and supply curbs. The cost curve is expected to rise in the medium term as raw material input costs increase and Chinese domestic bauxite quality deteriorates. LME three-month aluminium prices recovered to $1,770/t in late August from $1,450/t in early April.

South32 produced 5.27mn t of alumina in Australia and Brazil in 2019-20 and expects this to increase to 5.34mn t in 2020-21. Aluminium output in South Africa and Mozambique totalled 986,000t in 2019-20, which is projected to rise to 993,000t in 2020-21.

Nickel output from the Cerro Matosa mine in Colombia is expected to fall to 33,500t in 2020-21 from 40,600 in 2019-20 with a furnace shutdown scheduled for the October-December quarter.

While zinc equivalent output from the Cannington multi-metal mine in Australia expected to edge down to 330,800t in 2020-21 from 332,600t in 2019-20, production guidance for 2020-21 is 10pc higher than the original forecast. Mill throughput continues to benefit from firmer performances in underground mining and higher grades, South32 said. Cannington produces silver, zinc and lead.


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29/08/24

Nippon Steel to invest $1.3bn more in US Steel's mills

Nippon Steel to invest $1.3bn more in US Steel's mills

Tokyo, 29 August (Argus) — Japan's largest steel firm Nippon Steel is planning to make additional $1.3bn investment in US Steel's facilities in a move seen as an attempt to gain the support of US labour unions for the pending acquistion of the US company. Nippon Steel announced on 29 August plans to invest no less than $1bn to upgrade US Steel's facility at Mon Valley Works and around $300mn for Gray Works, on top of its $15bn acquisition offer . The investment is widely seen to be an effort to gain support of the United Steelworkers (USW) union and US politicians who are against the deal . Critics are concerned partly because possible consolidations following the acquisition could jeopardise US Steel workers' employment. Nippon Steel has reiterated that the current collective bargaining agreement between US Steel and its employees will not be affected by the deal. The company also mentioned plans for technological transfer to US Steel, including efforts to reduce environmental footprint and extend the longevity of other facilities, hinting at potential further investments that could expand employment opportunities. But USW's president David McCall is sceptical, saying "a press release is not a contract" and said Nippon Steel is continuing to avoid the union's input despite acknowledging one of the union's ongoing concerns. It remains uncertain whether the $15bn deal will be completed as Nippon Steel expects. The Japanese company has already in May extended the scheduled timing of the acquisition completion until the end of the year, following a request by US authorities for more documentation. This postponed the original plan to close the deal by September at the latest. The new $1.3bn investment will be contingent upon the successful completion of the acquisition, Nippon Steel said. By Yusuke Maekawa Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Australia's MinRes pulls back Li output with downturn


29/08/24
29/08/24

Australia's MinRes pulls back Li output with downturn

Singapore, 29 August (Argus) — Australian lithium and iron ore producer Mineral Resources (MinRes) will pull back on lithium production at its Mount Marion and Wodgina sites with the current downturn. "I'm starving the product going in[to] the market," said MinRes managing director Chris Ellison on 29 August. "I don't want to oversupply the market. I don't want to waste my ore." MinRes issued its July 2024-June 2025 fiscal year lithium shipment guidance on 6pc-grade spodumene grade basis for Mount Marion at 150,000-170,000 dry metric tonnes (dmt), down from the previous year's 190,000-220,000dmt, according to its latest full-year results presentation. Wodgina's guidance was 210,000-230,000dmt, down from the previous year's 210,000-240,000dmt. Its newer Bald Hill site, which was not issued a guidance, aims to ship 120,000-145,000dmt. "We've got used to higher prices. We've put a lot more gear in there and got greedier and tried to get more product. We're paying attention to that," said Ellison. But MinRes has no plans to shut the mines down. But it will spend "as little" as it can on the mines while conserving cash. MinRes' revenues for 2023-24 rose by 10pc against a year earlier to around A$5.3bn ($3.6bn), partly supported by higher iron ore revenues but offset by the weaker lithium prices. "We're in a tough market. We're in one of those downturns [but] it's nothing we need to panic about," added Ellison. He forecast lithium prices to likely remain depressed for "six months or so" before rebounding early next year. But has warned that if it does not, plenty of lithium operations are going to be "turned off". Argus-assessed prices for 6pc grade lithium concentrate (spodumene) held stable from a week earlier at $770-840/t cif China on 27 August, while prices for 99.5pc grade lithium carbonate ex-works China hit their lowest level since early 2021 and are currently at Yn73,000-78,000/t ex-works. MinRes will also not delve into downstream processing of lithium in his times, stressed Ellison in a sharp contrast with its rival Pilbara Minerals , stating those yield "marginal returns". MinRes earlier in June ended a transitional third-party processing agreement with US-based lithium producer Albemarle for the conversion of its Wodgina spodumene into lithium hydroxide. By Joseph Ho Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

China's Comac delivers more C919 planes to airlines


29/08/24
29/08/24

China's Comac delivers more C919 planes to airlines

Beijing, 29 August (Argus) — Chinese state-owned aircraft manufacturer Commercial Aircraft Corporation of China (Comac) has delivered its C919 airliner to major state-owned airlines Air China and China Southern Airlines. The two airlines each ordered 100 C919s in April from Comac, which will be delivered gradually during 2024-31. This latest deliveries mean that all three of China's largest airlines now have the C919 in their fleets. Comac in March delivered the first C919 to state-owned China Eastern Airlines, which in September 2023 placed an order for 100 of such planes. At the 2024 Singapore Airshow, Comac announced an order from Tibet Airlines for 40 C919s. It has received orders for more than 900 C919s. So far, nine C919s have been delivered to domestic airlines, Comac said. A continued increase in orders and deliveries of the C919 airliner is likely to continue to boost demand for titanium mill products in the coming years, market participants said. A single C919 aircraft contains 3.92t of titanium mill products. The aerospace industry accounts for over 25pc of global total titanium consumption, according to industry estimates. Comac launched the C919 development programme in 2008 and began prototype production in 2011. The airliner had its maiden flight in 2017 and received its airworthiness certification from Chinese authorities in September 2022. It completed its first pre-delivery flight test in the same year. China is also seeking Europe's approval for C919 to compete with established aircraft manufacturers Boeing and Airbus outside China. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

Strike ends at Chile's Caserones Cu mine


26/08/24
26/08/24

Strike ends at Chile's Caserones Cu mine

Sao Paulo, 26 August (Argus) — Workers at the Caserones mine in Chile reached an agreement with controlling group Lundin Mining to end a one-week strike. The majority of the union members at the mine have agreed to Lundin's new collective bargaining proposal, the company said on 24 August, adding that it would focus on resuming operations that were running at approximately 50pc capacity during the strike. Around 30pc of the mine's workers began striking in mid-August. Caserones is an open pit copper-molybdenum mine which produces high-quality copper concentrate, copper cathode and molybdenum concentrate, according to Lundin. By Carolina Pulice Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

China's Weiming advances Indonesia Nickel matte project


26/08/24
26/08/24

China's Weiming advances Indonesia Nickel matte project

Beijing, 26 August (Argus) — Major Chinese environmental protection equipment manufacturer Weiming has on 25 August made progress in its Jiaman high nickel matte project in the north Maluku province of Wedabay, Indonesia, the company announced. Weiming has started to preheat Jiaman's first side-blown converter on 25 August, which is a key step to bring the equipment to the linkage debugging stage before advancing to the production phase. Jiaman, a partnership between Weiming and Merit International Capital, has a nameplate capacity of 40,000 t/yr in nickel metal equivalent. It has four production lines with 10,000t of nickel metal equivalent each. Jiaman is the second project to adopt the oxygen-enriched side-blowing furnace (OESBF) process in Indonesia, following major Chinese nickel and lithium-ion battery cathode active material (CAM) precursor manufacturer producer CNGR in 2022 . The OESBF process is cost-effective as it uses ores with low nickel content as feedstock and recovers cobalt metal, CNGR said. Market participants are monitoring the progress of the OESBF process closely, as well as its feasibility, as it is still a developing technology. Weiming has two other high nickel matte projects in Indonesia, producing 40,000 t/yr and 50,000 t/yr of nickel metal respectively, bringing the company's total production capacity to 130,000 t/yr in nickel metal equivalent. Send comments and request more information at feedback@argusmedia.com Copyright © 2024. Argus Media group . All rights reserved.

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