Manganese prices on the area market in Europe leapt to near oneyear highs this month on supply issues fuelled by a longerthanexpected disruption at a key Australian supplier.

Traders quoted prices of manganese elect, or electrolytic manganese flake << MNG-LON >, varying around $2,115 per metric load in the European spot market, its greatest given that June 2023, according to Reuters reporting.

WHY IS IT ESSENTIAL

A cyclone in March shut operations at South32's. Groote Eylandt Mining Co (GEMCO) system in the Gulf of. Carpentaria, Australia.

In April, South32 said it would take about a year to reboot. exports at the center. It owns 60% of the mine, with Anglo. American owning the rest.

According to the U.S. Geological Survey, 20,000 tonnes of. manganese-- mainly used to enhance steel and in electrical. automobile batteries-- was produced globally in 2023.

The GEMCO mine is a key supply source for Asian. manganese smelters, representing almost 15% of top-quality. ( over 40% of manganese content) worldwide supply, and is the. world's second-largest manganese mine after Eramet Comilog in. Gabon.

CONTEXT

China, the world's largest producer of steel, saw prices for. silico-manganese, increase to their greatest considering that Sept. 27,. 2023 after news about the GEMCO blackout.

Additionally, products from South Africa, the top manganese. manufacturer, have actually been experiencing disrupted shipments due to. logistical challenges at state freight rail operator Transnet,. said Bank of America in a note.

KEY PRICES ESTIMATE

While the manganese market will aim to increase. production, it is not likely to be adequate, said Simon. Henochsberg, strategy director at mining business Eramet .

Eramet has little flexibility to increase ore. transportation in the short-term, Henochsberg added.

Some high-cost miners may ramp up production to capitalise. on the likelihood that prices will likely remain raised, said OM. Holdings, a manganese and silicon alloy business.