The price of manganese has been falling since October. As the price moves towards 2009 lows, the profitability of many high cost manganese producers is coming into question. If the miners reduce their output, prices may stabilize.
Manganese prices have remained weak due to oversupply and weak steel demand. However, emerging technologies demanding manganese may bolster prices going forward.
The price of manganese, an essential ingredient in steel production, has been declining, down some 40 percent year-over-year. Upwards of 12 million tonnes of new supply is coming from South Africa, weight down prices. However due to issues with Chinese manganese production, the country will have to increase imports.
The price of manganese is a good barometer for the health of an economy primarily because of its use in steel, a prime component of infrastructure projects. The price has moved lower, but remains stable. Also, improvements to South African railways are planned to meet new demand from new, massive manganese projects.
The price of manganese flake in China has been firming up due to curtailed production. Manganese Investing News spoke with Larry Reaugh, CEO of American Manganese Inc. about the factors at play in the manganese market.
In an exclusive interview with Manganese Investing News Jonathan Lee, Battery Technology and Materials Analyst for Byron Capital Markets, discusses manganese battery technology and the capabilities of this emerging technology.
Lithiated Manganese Oxide is one technology ideal for high-performance batteries. Milwaukee Tools uses this type of battery in their electric power tools and the adoption of this technology is growing into other applications.
Larry Reaugh and Mike McLeod of American Manganese speak about the coming shortage of electrolytic manganese dioxide (EMD) and the future of battery technology for mobile electronics and electric vehicles.
The use of manganese and electrolytic manganese metal in emerging battery technology could provide a much needed new market for manganese. The size of this market is truly immense, from mobile electronics, the automotive industry and even electrical power plants being developed at Stanford.
Prices for March delivery of manganese in China have slipped due to fierce competition and excess inventory. The ramp up in manganese production in 2010 seems to have hit a ceiling in the short term. However, long term outlook shows increased demand for the metal going forward.
Thursday, January 5, 2012