"It's going to be a different world" in the manganese market. Rest assured it will be the big players who will dominate and even some of those are about to get a spanking from Malaysia. Unfortunately GMC will be on the back foot even if the do manage to finally build in Indonesia.
Hello Malaysia, goodbye South32, part 1
ON AUGUST 7, 2017 BY ALANPATRICKRYAN
2018 could (should) be the Year of the Malaysians in the US manganese market, helped in no small amount by Nucor/DJJ/ and South32.
Next year, the three manganese manganese and two ferrosilicon plants in Malaysia should be operating at capacity—over 600,000 mtpy of manganese alloys alone—and some (perhaps a lot more than some) will be headed to the US.
And, that space was opened up by the association of Nucor/DJJ/ and South32. Ever since the three parties joined hands, with South32 selecting DJJ as its US agent, other US mills have been vocal opposing it. They, and their other suppliers, felt it gave Nucor too much control and information over the manganese markets. However, there was NOTHING they could do about it since there was no good alterative.
That is going to change in 2018 with US mills start their annual sales talks. Already at least some of the mills have been approached by sellers offering Malaysian material on an annual basis but also on multiple year contracts. And, the buyers expect favorable prices too. “Assuming I get the same price for South32 material via DJJ and someone else, I am going to go with the someone else,” one buyer said. “There isn’t even the slightest doubt.”
Some buyers are already planning to go to Malaysia to see the plants and get to know the ownership. They also want quality assurances. It’s going to be a different world.
Who’s who in Malaysia, part deux
ON AUGUST 7, 2017 BY ALANPATRICKRYAN
Of the three Malaysian ferroalloy producers, the most attention has been garnered by OMH’s Sarawak operation. It is expected to produce 170,000-200,000 mt of ferrosilicon, both 75% and specialty products, and 250,000 mtpy of manganese alloys, including silicomanganese and high-carbon ferromanganese. Initially the plant was designed to make 265,000 mtpy of manganese alloys and 310,000 mtpy of ferrosilicon using 22 22.5-MVA furnaces. The current plans are for 16 22.5 furnaces, 10 on ferrosilicon and six on manganese alloys.
Currently, the company is selling through various suppliers, but has had negotiations with Glencore (which opted to align itself with Ferroglobe last year) Hanwa and Fesil. Negotiations were last year, Hanwa especially interested.
OMH promises to be the most likely candidate to supply the US. Assmang Sukura is going to produce about 300,000 mtpy of high-carbon ferromanganese but may also make silicomanganese. The plan as two 81-MVA furnaces. In addition to Assmang, the majority owner, the plant is owned by China Steel and Sumitomo. It is expected that most of that material will remain in Asia but if some comes to the US, it will through Minerais.
Finally, there is AML’s Pertama smelter which is expected to produce 240,000 mtpy of high-carbon ferromanganese but I wouldn’t be surprised to see it make a host of manganese alloys, including silicomanganese, low-carbon silicomanganese, medium- and low-carbon ferromanganese, manganese metal and 75% of ferrosilicon.
AML has a Pittsburgh sales office but also sells to other resellers. Pertama is owned by AML, Chuo Denko Koyo, Sinsho Corp. and Carbon Capital.
GMC Price at posting:
0.7¢ Sentiment: None Disclosure: Not Held
