Manganese Matters n° 12(Issued June 26, 2015)1

The IMnI does not accept any responsibility for information, views or opinions contained in the articles reprinted in Manganese Matters, which are solely those of the publications credited.

Article Index3

IMnI UPCOMING MEETINGS

Statistics Committee Meeting

Tuesday, November 10

Istanbul

OHES Meeting

Tuesday, November 10

Istanbul

REACH Steering Committee Meeting

Tuesday, November 10

Istanbul

Supervisory Board Meeting

Tuesday, November 10

Istanbul

International Manganese Institute

17 rue Duphot

75001 Paris

France

Tel: +33 (0) 1 45 63 06 34

Fax: +33 (0) 1 42 89 42 92

E-mail:

Web site:

IMnI’s 41st Annual Conference

IMnI’s 41stAnnual Conference, which closed last week in Shanghai, attracted 154 delegates – down from last year but a respectable turnout given the challenges the industry is facing presently. Quality was not down, though, with the speakers and the technical tours living up to our professional standards

Structured around the theme “China at the Crossroads: Into the Mouth of the Dragon”, main speakers included: Simon Baptist, Chief Economist for The Economist Intelligence Unit, who presented a helicopter view of the Global Economy: Movers, Shakers & Strugglers: Who Will Lead the World Tomorrow?; James Kynge, Emerging Markets Editor Financial Times & Author of "China Shakes the World: The Rise of a Hungry Nation" who looked back at what China had become (and would become) since he had spoken at the 2002 Annual Conference in Shanghai; Gao Xu, Chief Economist & Head of Economic Research at China Everbright Securities Co., Ltd., who presented China's New Leadership Strategy & Economic Policies; Emmanuel Bonnaud, Senior Partner, Roland Berger Strategy Consultants, who gave an overview on Global Steel and followed by GraemeTrain, Associate Director, Macquarie Commodities Research, who looked at China's Steel Industry: What Are the Drivers? And How Will the Overcapacity Problem be Solved?. Tan Zhuzhong, President, National Friendship Association of Electrolytic Manganese Metal Factories; Xizhou Zhou, Senior Director & Head of China Energy, HIS; Jongsub Lee, Senior Vice President, Steel Business Division, POSCO;Oscar Tjakra, Senior VP, Freight Research, Oldendorff; Simon Collins, Head of Business Development, South32Zhou Jian, Chairman of IMnI's Statistics Committee (Vale); and Aloys d'Harambure, IMnI Market Research Manager rounded out the roster of speakers.

A panel discussion on How Will the New Mn Cycle Play Out? (effects of exchange rates on cost curves, energy constraints, environmental regulations, indexes, development of Exchanges…) – featuring Simon Collins, Head of Business Development, South32; Arnaud Tissidre, Vice President Marketing Mn Division, Eramet-Comilog; Alastair Stalker, Managing Director, Ore & Metal; Teruaki Ishiyama, Director & Senior Adviser, Nippon Denko; Cheng Bin, General Manager, Senior Engineer, Shanghai Jinneng International Trade Co., Ltd.; Bob Qiu, Chief Marketing Executive, Tianjin Hoperay Minerals Co. Ltd.; Serafino Capoferri, Editor, Mn Ore Cost Curve Service CRUand moderated by Anne Tremblay, IMnI’s Executive Director – was a first and much appreciated by the audience

The Conference ended with our traditional poll, which allows members of the audience to rate IMnI’s services and express their views on the steel and manganese industries and developing economic trends. (Full poll results can be accessed on the IMnI website at: Polling Report

Manganese Matters n° 12(Issued June 26, 2015)1

The IMnI does not accept any responsibility for information, views or opinions contained in the articles reprinted in Manganese Matters, which are solely those of the publications credited.

South32 sponsored the welcome cocktail, while Nippon Denko, Transalloys and United Manganese of Kalahari (UMK) sponsored the lunches.

The two days of technical tours organized just prior to the conference offered visitsto Jinneng Alloy Operations -- Fengyu Ferroalloy Co. Ltd. and to Jiaocheng Yiwang Ferroalloy Co., Ltd.

The PPT’s delivered during the conference can be found on IMnI’s website at:IMnI 2015 Annual Conference – Presentations.

Chairman and Officers Elected at General Assembly

IMnI members re-elected Eramet’s Arnaud Tissidre as their Chairman on June 18 at the Annual Conference in Shanghai. Also re-elected was Pedro Larrea (Ferroatlantica) as Vice-Chairman. Esteban Rivero (Autlan) was elected as Vice Chairman and Ruan van Schalkwyk (Glencore) was re-elected Treasurer.

The General Assembly also adopted some changes to the By-Laws, allowing for the creation of a 2nd Vice-Chairmanship and changes in the fee structure and consequent voting rights.

IMnI held its 12th EPD Conference on June 12

in Shenzhou Peninsula (Hainan Island)

Presentations are now available

IMnI hosted its 12thElectrolytic Products Division (EPD) Conference on Hainan Island on Friday, June 12. This year’s event was planned to coincide with the Annual Conference, also held in China.

As a result, more IMnIore producing members were in attendance.The event was a major success once again, with over 100 delegates in attendance. It is now the premier global Mn Metal and Mn Dioxide Conference. There were 8 presentations followed by a round-table panel discussion, animated by EPD Chairman Li Weijian, Vice-Chairman and CEO of CITIC Dameng Manganese Industries Limited. The topic of the panel: Panel Discussion: "Business Cooperation and Technical Exchanges between Overseas Mn Miners and Chinese Mn Market".

Next year’s EPD Conference will take place in late March – early April in Nanning around the Metal Bulletin Ferroalloy Conference in Hong Kong.

All presentations given at the 12th EPD Conference earlier this month are now available on IMnI’s website. You can download them in both English and Chinese by following this link: EPD Conference Presentations

Manganese OHES Showcase Symposium

October 14-15, 2015 – Save the Date!

The International Manganese Institute (IMnI) launched an ambitious 5-Year Plan in 2011 to cover scientific knowledge gaps regarding the impacts of manganese on human health and the environment The 5-Year plan is now completed and has produced significant new research. These new studies will be showcased at a dedicated symposium, addressing four major themes:

  • Evolution of Manganese Occupational and Environmental Exposure Guidelines
  • Toxicological Research on Manganese
  • Manganese Environmental Footprinting
  • How the New Science can be used for Regulatory Compliance.

Speakers include representatives from relevant regulatory agencies, industry and academia. This workshop will serve as a forum for leaders in risk assessment, risk management and communication-related areas to come together to debate on the latest advancements in Mn research and how they can be best applied.

The symposium will take place at the University of Ottawa, Canada, from October 14-15, 2015.

Admission is free.

More information will be provided soon.

Special Discount for CIS Ferroalloys Markets Conference

IMnl has negotiated a 10% discount* for IMnI members to the CIS Ferroalloys Markets conference which will be held in Tbilision September 14th. Registration form can be retrieved here.

International CIS Ferroalloys Markets conference, organized by Business-Forum and Metal-Expert, supported by Privat Intertrading and IMnI, will be held on 14th of September 2015 in Tbilisi Marriott Hotel, Georgia (more information here)

The conference is devoted to analysis of the current situation and prospects of the ferroalloys industry development in 2015-2016.

The key conference topics will relate to the plans of the largest ferroalloys producers, possibilities of supplies reorientation and markets expansion. Besides that will be discussed the questions of raw materials and changes in the structure of export supplies from Ukraine in connection with possible trade restrictions and the investigation of the ECE.

Main topics of the conference:

  • Russianmanganeseoremarket. Complete transition to the use of raw materials from far abroad
  • Position of Ukraine on Russian Mn alloys market. Opportunities and prospects
  • Mergers and acquisitions processes on the Si and Cr alloys market in Russia
  • RedistributionofsharesontheCISmarkets. Ukrainian suppliers activity, opportunities for Indian suppliers, foreign investors introduction
  • Export potential of Russian and Ukrainian companies on Europe and Turkey markets
  • New trade restrictions in Ukraine as a trump card for the domestic suppliers and a loss of market for importers
  • Rawmaterialscomponent. Coke deliveries problems to the enterprises of Ukraine.

Special Discount for Metal Bulletin Conference in Istanbul

IMnl has negotiated a 15% discount* for IMnI members to the 31stInternational Ferro-Alloys Conference which will be held in Istanbul from November 8 to 10. Program and information can be retrieved here.

To take advantage of the special discount, please register on Metal Bulletin’s website here using this code: IFA15IMnIor send an email to

*Applied to first two delegates from named company only. Not applicable to existing discounted registrations.

Manganese Matters n° 12(Issued June 26, 2015)1

The IMnI does not accept any responsibility for information, views or opinions contained in the articles reprinted in Manganese Matters, which are solely those of the publications credited.


ARTICLEINDEX

ASIA(OTHER)

  • Gulf Manganese advances Indonesia project...... 22/06/15

CHINA

  • Low prices choked off China's manganese ore import trade in May...... 25/06/15
  • China Shandong Intl starts ferro-alloys tender for July...... 24/06/15
  • Shougang Group increases FeSi tender price in June...... 17/06/15
  • China’s Ningxia to shutter 74,000t/yr ferro-alloys capacity in 2015...... 17/06/15
  • Chinese HC FeMn prices edge down on lower tender prices...... 16/06/15
  • Tianjin Iron and Steel increases FeSi tender price in June...... 10/06/15
  • China’s Guangxi province to implement lower electricity prices...... 09/06/15

INDIA

  • Indian chrome ore production drops in April...... 18/06/15
  • Indian silico-manganese prices edge higher...... 16/06/15
  • India market report - ferro-silicon price rises...... 09/06/15

EUROPE

  • Europe SiMn seen having enough support despite price slip...... 17/06/15
  • Europe HC FeMn market cements floor on reduced output...... 17/06/15
  • Europe Mn flake market consolidates price increase...... 15/06/15
  • Europe SiMn market set to trudge quietly through June...... 10/06/15

CIS

  • Ukraine's May FeMn output falls on month as Nikopol cuts output...... 09/06/15

OCEANIA

AFRICAMIDDLEEAST

  • Hearings begin into Eskom request for extra tariff hike...... 23/06/15
  • S Africa Eskom implementing power load-shedding again...... 22/06/15
  • S Africa electricity users have last chance to stall further price hike...... 19/06/15
  • Assmang to shut HC ferro-manganese furnace...... 16/06/15
  • Eramet inaugurates Gabon manganese plant...... 15/06/15
  • Assmang will close one Cato Ridge furnace...... 10/06/15

AMERICAS

  • US SiMn market looking stable near term, awaits tender result...... 26/06/15
  • Eramet Marietta back to full production after blaze...... 26/06/15
  • US orders for durable goods dip again in May...... 25/06/15
  • US FeMn market edges down on low-key spot trading...... 25/06/15
  • Brazil’s govt extends low-priced energy contract for electro-intensive industries...... 24/06/15
  • US FeMn market seen hemmed in current price range...... 19/06/15
  • Mexico manganese producer cancels $100mn share issue...... 19/06/15
  • US SiMn market edges up, awaits Nucor tender result...... 18/06/15
  • Eramet Marietta running normally after plant blaze...... 18/06/15
  • Eramet Marietta plant equipment damaged by fire...... 17/06/15
  • US FeMn market narrows in price range amid slow trading...... 10/06/15

GENERALINFORMATION

  • Commerce delays ruling on SiMn imports...... 22/06/15
  • MANGANESE ORE INDEX: High and low grades slide as oversupply shows no signs....19/06/15
  • WEEK IN REVIEW: Dragon Boat slowdown, Greece showdown...... 19/06/15
  • MANGANESE ORE INDEX: Grades swap fortunes as 37% ore slides...... 12/06/15
  • Ferro-manganese prices jump on South32, Assmang supply issues...... 12/06/15
  • TAPPED IN - the ores and alloys blog: Ferro-manganese is having its moment...... 10/06/15

STEELNEWS

  • US steel output falls by 8.6pc in latest week...... 25/06/15
  • US steel imports hit by weak crude drilling...... 25/06/15
  • Argentina auto sector slump bad news for raw material suppliers...... 24/06/15
  • Global steel output down in May...... 22/06/15
  • EU steel prices seen capped on looming imports – MEPS...... 22/06/15
  • Nucor: Steel imports to depress profits...... 19/06/15
  • Higher capacity utilisation raises US steel output...... 19/06/15
  • European steel outlook stable despite falling prices - Moody's...... 10/06/15
  • Long steels markets set to cement strengthening stability...... 09/06/15
  • LME delays launch of new steel contracts...... 09/06/15
  • India imposes anti-dumping duty on stainless steel...... 09/06/15

OHES SCIENCE

OTHER

************************

EMM

  • Manganese prices lose ground in China after one-month uptick...... 25/06/15
  • Europe Mn flake market eases amid quiet demand...... 23/06/15
  • Mn flake prices stabilise in China...... 23/06/15
  • Mn flake prices edge up in China, outlook uncertain...... 16/06/15
  • Chinese selenium dioxide market rebounds on stronger Mn prices...... 09/06/15

EMD

  • Why Lithium Isn’t the Big Worry for Lithium-Ion Batteries...... 23/06/15

THE MANGANESE INDUSTRY

ASIA (OTHER) / backtoindex

Gulf Manganese advances Indonesia project

Metal-Pages 22/06/2015

ASX-listed Gulf Manganese Corporation (GMC) has been told that the licensing process time for its smelter project in Timor, eastern Indonesia has been cut due to a new Indonesian government procedure.

A Gulf statement said that the industrial business licence will take 20-25 days from application to be approved.

A soon as it gets the two licences it needs, Gulf will start construction of the first furnace module, with the plant expected to come online within 12 months.

The financial analysis of the redrafted study showed that the project has the potential to return an EBITDA of $374.7mn within ten years, supporting an estimated net value of $160.6mn using an 8pc discount factor, it said.

The project needs start-up capital of $66mn, which is staged in 5 years.

The company is planning to build eight furnaces in four years. The latest study highlighted the benefit of having access to high quality manganese ore, access to existing port and infrastructure as well as lower than average industry costs.

The plant be capable of annually producing 144,000t of ferro-manganese alloy and 180,000t of manganese lump ore. In the first year, high grade manganese ores will be bought and treated via a jigging process to produce lump manganese ore.

High grade manganese ore will be bought from Timor and blended with medium grade high iron manganese ores sourced from Africa. The fully integrated manganese business benefits from established port and infrastructure.

GMC will also have a supply agreement with a South African group for the supply of up to 80,000t/yr of manganese ore from its South African operations. The balance of the ore supply, up to 220,000t/yr, will be sourced domestically in Indonesia and Timor Leste.

As ferro-manganese alloys are mostly used in stronger quality steels the major market will be Japan, Korea, Europe and China. China has a strategy to move to producing stronger quality steels to support an export industry to compete internationally. That should lead to increasing demands for ferro-manganese.

The current annual consumption of high carbon ferro-manganese alloy is 4.2mn t. Gulf's annual ferro-manganese output will account for 2.5pc of world consumption, while annual world demand for high carbon ferro-alloys is forecast to increase 10pc in the next five years.

CHINA / backtoindex

Low prices choked off China's manganese ore import trade in May

Metal Bulletin 25/06/2015

China’s manganese ore imports fell by over 20% on the month and year in May, as prices continued to fall leading traders to stay out of the market.

The country's manganese ore imports fell by 23% month-on-month in May to 1.07 million tonnes, also down 21% year-on-year.

China's April imports had risen 14% year-on-year and 2% against the previous month.

The drop in exports was largely attributed to manganese ore prices falling to low levels in May, which led to many traders sitting out of the market and overseas miners being reluctant to sell into China at low prices.

"There was less profit for importing manganese ore in May. Importers in China were not willing to trade. Neither are miners, some of [whom] shut export access to China in the middle of May," an importer told Metal Bulletin.

Metal Bulletin's 37% manganese ore index price in May fell to its lowest level since its launch in 2012.

Metal Bulletin's index price for 44% manganese ore also dropped to a record low.

"We assume that the import volume in June will go up slightly thanks to manganese ore prices picking up a little in June," a Shanghai-based analyst said.

Of the May imports into China, 228,500 tonnes came from Australia, 597,100 tonnes from South Africa, 42,400 tonnes from Brazil, and 57,300 tonnes from Gabon, according to the latest customs data.

China Shandong Intl starts ferro-alloys tender for July

Metal-Pages 24/06/2015

China's Shandong International Trading Group, a subsidiary of Shandong Iron and Steel Group, has started a new round of monthly ferro-alloys procurements for delivery in July.

The company is planning to buy 12,285t of ferro-alloys for its parent company. The material includes ferro-silicon, silico-manganese, high carbon ferro-manganese, medium carbon ferro-manganese and 13 other products. The public tender will close at 12:00am on 25 June.

A number of steelmakers will start their monthly procurements in the next few weeks following the tender by Shandong Iron and Steel Group.

Ferro-silicon prices have increased since the start of June in response to tight prompt supply, and steelmakers’ tender prices have increased by RMB100-150/tthis month compared with the previous month.

Prices are expected to hold steady or increase slightly for delivery in July owing to tight supply, even though the steel market is sluggish.

Shougang Group increases FeSi tender price in June

Metal-Pages 17/06/2015

Shougang Group, one of the top ten steelmakers in China, has released its ferro-alloys tender prices for delivery in June. The steelmaker has followed HBIS and Shagang Group by increasing ferro-silicon tender prices.

The tender price for ferro-silicon 75pc grade increased by RMB150/t compared with the previous month.

The tender price for silico-manganese 65/17 grade declined by RMB50/t compared with May. Additionally, the tender price for high carbon ferro-manganese 65C7.0 grade declined by RMB150/t.