Will the Rainstorm in Brazil Shore up Manganese Ore Prices?

Published: Jan 12, 2022 15:06

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Vale, the world's second largest iron ore mining giant, has suspended the production at some of its iron ore mines as heavy rains hit south-eastern Brazil.

SHANGHAI, Jan 12 (SMM) - Vale, the world's second largest iron ore mining giant, has suspended the production at some of its iron ore mines as heavy rains hit south-eastern Brazil. The have rainfalls also caused a landslide at its Salobo III copper project in the northern Brazilian state of Pará. Over the weekend, heavy rains hit the state of Minas Gerais in southeastern Brazil, blocking highways and affecting several mining companies. CSN Mineracao SA said that the mining and transport operations at the Casa de Pedra mine were temporarily suspended due to heavy rains; and Usiminas' mining subsidiary has also suspended its operations.

According to customs data, from January to November 2021, China imported 1.479 million mt of Brazil manganese ore, accounting for 5.69% of China’s total manganese ore imports, a decrease of 51.78% compared to imports in the same period in 2020.

According to SMM, the heavy rainfall in Brazil also has had some impacts on manganese mines in Brazil, and the transportation was also restricted. However, since the federal government of Brazil has re-implemented the legality of mining and export restrictions on small mines, many traders and mines in Brazil have suspended their exports, since when the supplies of Brazil ore in China have been gradually reduced. Therefore, SMM thinks that even if the transportation of Brazil manganese ore is obstructed in the short term, the NPI plants in China have other alternatives, and the overall impact on the production of manganese alloy will be relatively small. Hence the prices of Brazil ore is unlikely to go up.

Manganese ore

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