Katowice, Poland – October 07, 2024

**Manganese Ore Market**

The manganese ore market in China has started to recover following a series of economic stimulus measures announced by the government. Prices for seaborne ore increased slightly as buyers became more active ahead of the Chinese holiday season. In particular, interest in semi-carbonate ore was noted.

Demand for manganese ore increased following the announcement of stimulus measures, including a reduction in bank reserves and support for infrastructure projects. These measures improved sentiment in the Chinese steel and raw material markets, which also positively affected the manganese market.

Although ore prices at ports declined slightly due to high inventories, transaction volumes increased as producers replenished stocks ahead of the holidays. Despite the overall improvement in sentiment in the manganese alloy market, demand from end users remains volatile.

In addition to the increase in demand for manganese ore, some additional developments are observed in the market:

The strengthening of the Chinese yuan has reduced the cost of importing ore, which has contributed to the increase in purchases in the seaborne market.

The increase in silico-manganese prices in the futures market has supported the increase in confidence among manganese alloy producers and traders.

Despite the improvement in sentiment, high manganese ore stocks in Chinese ports are putting pressure on prices, limiting their further growth.

The increase in manganese ore purchases is observed before the Chinese national holidays, which allows sellers to reduce inventories.

Thus, the changes in the market are taking place in an environment of economic stimulus, but overall uncertainty and high ore supply continue to restrain a more significant price increase.

**Iron ore prices recover from deep decline**

The iron ore market experienced significant volatility in September 2024 due to economic factors, including a weak economic recovery in China, which led to prices falling to multi-year lows as of September 23. However, the situation changed when the Chinese government announced economic incentives on September 24, which led to an increase in iron ore prices by more than 7% per day. These measures are aimed at supporting infrastructure projects and increasing demand for steel.

Experts note that the iron ore market remains volatile due to global economic uncertainty and geopolitical factors, but Chinese incentives could contribute to further growth. Analysts predict that iron ore prices will fluctuate in the range of $90-100 per tonne by the end of 2024, although a drop to $60-80 per tonne is possible in the worst-case scenario.

**EU steel distributors have a pessimistic outlook for Q4**

European steel and metals distributors are predicting a challenging Q4 2024, expecting a decline in market activity and prices. According to the EUROMETAL survey in September, inventories will remain stable or slightly decrease, indicating a cautious approach against the backdrop of market uncertainty. Prices are expected to continue to fall, despite previous neutral expectations. Overall, the sector is preparing for a difficult end to the year due to weak demand and falling prices, especially against the backdrop of a downturn in steel markets in Europe and China.

**UK closes last coal-fired power station**

On September 30, Ratcliffe-on-Soar power station in Nottinghamshire ceased operations, becoming the last coal-fired power station in the UK. After 57 years of operation, it is scheduled to be demolished in two years. This marks the end of the era of coal-fired electricity generation in the country. Britain became the first industrialized country to completely abandon the use of coal for electricity generation, replacing it with gas and renewable energy sources.

**Borrell calls on EU to focus on supporting Ukraine’s energy front**

EU High Representative Josep Borrell has called on the European Union and its partners to focus on supporting Ukraine’s energy infrastructure during the winter. He stressed that Russia is trying to undermine the morale of Ukrainians by shelling energy facilities, which could lead to a large-scale humanitarian crisis. Borrell said the EU has already allocated 400 million euros to Ukraine to restore energy capacity and will increase electricity imports to 2.2 GW. He also called for accelerating the supply of air defence systems to protect critical infrastructure.

**Canada imposes 25% tariff on Chinese steel and aluminium**

From October 22, 2024, Canada will begin imposing a 25% tariff on steel and aluminium products from China, including more than 160 products such as hot-rolled and cold-rolled products, pipes and bars. This measure is aimed at protecting Canadian workers and businesses from excess Chinese products on the market. Canadian steelmakers support this decision. To mitigate the consequences, the government will introduce a mechanism to review tariffs in the event of shortages or other exceptional circumstances.

**Alchemia sells pipe mill in Poland — Alchemia Walcownia Rur Andrzej**

As part of its restructuring and adaptation to volatile market conditions, the metallurgical group Alchemia is selling its seamless pipe mill in Poland — Alchemia Walcownia Rur Andrzej (WRA).

Alchemia closed the WRA mill in early 2024 due to its uncompetitiveness due to outdated technology and high production costs. The sale of the mill is an important part of the company’s restructuring strategy.

The list of equipment put up for sale includes presses, rolling mills, drawing, processing and testing equipment. The mill produced a wide range of seamless pipes, including for structures, boilers, gas pipelines, shipbuilding and threaded pipes.

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Primeore Trading (Polska) Sp. z o.o. is a trading arm of Primeore Ltd. which is responsible for handling of all international trading and trading-related operations of the group. The company is involved into operations with manganese ore, ferroalloys, coke and coal products worldwide.

Media contacts

For further information please contact office.poland@primeore.eu