Chinese Exports of Electrolytic Manganese Metal in Q1 of 2009

BEIJING, June 12 -- According to the customs-statistics released in China, the exports of electrolytic manganese metal from China in the Q1 of 2009 were as per the table attached hereto. Namely, China exported 37,000 tonnes of electrolytic manganese metal in January to March quarter of 2009 which had a considerable decrease of 42.3%YoY compared with that in the same quarter of 2008. Particularly, China exported 6,916 tonnes of electrolytic manganese metal for Japan in the Q1 of 2009 having decreased largely by 46.3% compared to that in the same quarter of 2008.

    South Korea is one of the main markets to export electrolytic manganese metal from China and, as a matter of fact, China exported 10,803 tonnes of electrolytic manganese metal for South Korea in January to March quarter of 2009, having increased by 12% compared with that in the same quarter of 2008. However, in the same case as that of Japan, China exported 10,858 of electrolytic manganese metal for Europe in January to March quarter of 2009, which also had a large decrease of 50% compared to that in the same quarter of 2008.

    Electrolytic manganese metal is mainly used to produce stainless steel, special steel and aluminum alloys but the production of stainless steel in Japan for January to March quarter of 2009 had been depressed on a low level and the output had declined to 30% to 40% of that produced in the same quarter of 2008. The production of special steel in Japan for the Q1 of 2009 had been also on a low level and these decreases in the steel production had put a certain influence on consumption of electrolytic manganese metal in Japan.

    However, the unit price of Chinese electrolytic manganese metal averaged on exports in January to March quarter of 2009 was USD 2,505 per tonne FOB having fallen by 17.7% from that exported in the same quarter of 2008. The cost to produce electrolytic manganese metal in China is estimated to be CNY 12,800 per tonne to CNY 13,000 per tonne and when such various charges as export duty, inland transportation and so on are added, the cost on FOB base to export electrolytic manganese metal from China will require to come to USD 2,500 per tonne.

    (Source: Tex report)