While demand for steel is expected to cool off slightly in 2011, Indian steel manufactures are aggressively seeking raw material acquisitions such as manganese mines in South Africa. India hopes to increase steel production by 67 percent by 2012.
A new proprietary process for the treatment of manganese ore being developed by American Manganese may decrease the competitive advantage held by Chinese steel manufactures over the steel producers in the US. The new economic and environmentally friendly process can produce high quality manganese from low grade ore.
While demand for steel is rising, overproduction and surpluses have put downward pressure on the price of steel, and consequently, manganese. However, strong data shows little signs of weak demand for the metals. Is the downward trend a slowing of emerging economies or simply a price correction? Also, manganese company news, and an interesting development in manganese mining from Korea.
Mining giants BHP Billiton and Vale S.A. have increased their manganese production in light of rebounding steel demand from India and China. The long term outlook for manganese looks strong due to increased demand for the metal, as well as factors on the supply side that may drive up prices through 2011.
OM Holdings and Jupiter Mines have announced major manganese mining operations in South Africa. Also, American Manganese Inc. is advancing its manganese mine in Mohave County, Arizona.
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