The Conversation (0)
Mining Weekly reported that Graham Kerr, CEO of South32 Ltd. (ASX:S32), commented recently that the manganese market would benefit from “rational decisions and … a disciplined supply approach.”
Mining Weekly reported that Graham Kerr, CEO of South32 Ltd. (ASX:S32), commented recently that the manganese market would benefit from “rational decisions and … a disciplined supply approach.”
As quoted in the market news:
South Africa’s manganese supply growth had outpaced demand and with steel demand weakening, supply would need to continue to adjust.
The last thing that South Africa needed was to increase production capacity as the market dynamics had changed fundamentally.
Manganese participants had a role to play in responding to market fundamentals and the industry needed to take a disciplined supply approach.
The main driver for manganese ore was steel production, where there was no substitute for it and manganese demand growth was thus roughly in proportion to steel growth, which is currently muted.
“The challenge for manganese has ben the fragmented growth in South Africa’s Kalahari basin over the past five years,” Kerr said, adding that the industry could not depend on quick recovery has market fundamentals had changed.
“The industry needs to take rational decisions and take a disciplined supply approach.”