DIG/ The price of the Eramet mining group plummeted on Wednesday October 16, 2024 on the Paris market, losing up to -18.73%, to 53.60 euros.
This situation is consecutive following the announcement of the temporary cessation of manganese production in Moanda.
According to the explanations of the French metallurgical giant, the sharp decline in carbon steel production in China this summer led to a sharp drop in ore purchases by Chinese manganese alloy producers, in parallel with a sudden increase in the supply of mainly low-grade ore produced in South Africa, accelerated by the temporary surge in prices before the summer.
This situation led to a market imbalance which weighed heavily on sales of high-grade ore as produced at Moanda in Gabon, as well as on the market price index (CIF China 44%) which now stands at today at around $4/dmtu.
As a result, the Group’s high-grade manganese ore sales volumes, strongly constrained in Q3, are now estimated between 6.0 and 6.5 Mt in 2024, including around 0.7 Mt of internal sales.
In this context, Eramet, as a responsible mining operator, has decided to suspend ore production from the Moanda mine for at least 3 weeks; sales and shipments will continue during this period. The duration of this shutdown will be adjusted according to market developments.
The target volume of manganese ore produced and transported for 2024 is therefore revised to be between 6.5 and 7.0 Mt (compared to 7.0 to 7.5 Mt previously).
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2024-10-17 04:48:00