Suspension of operations at South32’s GEMCO manganese ore unit impacts demand trends in Asia

Suspension of operations at South32’s GEMCO manganese ore unit impacts demand trends in Asia

Manganese smelters in Asia are facing a major challenge following the suspension of operations at the GEMCO manganese ore supplier in Australia. The suspension, caused by tropical cyclone Megan, has led to a scramble for alternative supplies among smelters in countries such as China, India, Japan, South Korea, Indonesia, and Malaysia.

With GEMCO export sales and wharf operations expected to remain suspended until 2025, Asian smelters are looking for other sources of manganese ore or adjusting their production blends to accommodate the loss. Some are considering using lower-grade materials or exploring partnerships with other suppliers in Gabon and South Africa.

The suspension at GEMCO has also sparked a rise in manganese ore prices, benefiting existing suppliers but creating opportunities for other miners to enter the market. Prices for both high-grade and lower-grade manganese ore have been steadily increasing in recent weeks, with Asian buyers accepting higher offers.

Despite the market opportunities created by the suspension at GEMCO, emerging miners are facing challenges in quickly filling the supply gap. Technical considerations and the ramp-up time required for new operations are hindering the ability of miners from countries such as Brazil and Cote d’Ivoire to meet the demand.

Overall, the suspension at GEMCO has had a significant impact on the manganese ore market in Asia, leading to increased competition among suppliers and rising prices. Smelters and buyers in the region are now navigating a complex landscape as they seek to secure alternative sources of manganese ore to meet their production needs.

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