South Africa: Heavy rains disrupting manganese ore supplies may impact global market
Manganese ore exports got delayed from Durban port in South Africa after heavy rains caused floods. The calamity hit the eastern coast of South Africa on 11 Apr’22,...
Manganese ore exports got delayed from Durban port in South Africa after heavy rains caused floods. The calamity hit the eastern coast of South Africa on 11 Apr'22, resulting in heavy damage in the region.
The delay in shipment of manganese ore from the Durban port amounted to around 300,000 tonnes (t).
The damage caused by the rains has been assessed as severe and the government has declared that it is one of the worst storms in the history of the country.
Exports
South Africa's exports of manganese ore in CY'21 stood at 2.09 mnt, while till Feb in CY'22 exports stood at 36,550,16 t. Exports to China (South Africa's largest manganese ore importer) and Japan in CY'22 fell by 17% and 27% respectively.
Shipments of all mineral resources, including manganese ore, have been delayed by a couple of weeks and sellers and buyers seem to be stuck on both ends as the bridge near Durban port has been swept away.
Suppliers are confronted with unforeseeable circumstances, creating an invariable gap between demand and supply amid rising prices of raw materials and fuels.
Notices of force majeure have been issued over bulk transactions, and suppliers are apprehensive regarding the impact on exports of manganese ore.
As per sources, the delay included shipments to Tshipi, UMK, South32, Fujax, WMA and other suppliers.
Largest exporter
South Africa is the largest manganese ore exporter in the world and the natural calamity will spell adverse consequences in the global manganese ore market.
Out the country's total exports, shipments to India in CY'21 had been recorded at 3.33 mnt.
India impact
India is a major importer of carbonate ore from South Africa and the current delay in shipments from South Africa will hamper the manganese ore market in India.
India's imports of manganese ore in CY'20 stood at 3.65 mnt and, in CY21, imports jumped to 6.12 mnt. In CY21, India imported 3.2 mnt of manganese ore from South Africa as against 2.002 mnt in CY'20, up by 1.204 mnt.
South Africa accounted for 52.25% of India's manganese ore imports in CY'21.
The predicament in the South African market will affect the global manganese ore market, including India, which sources more than 50% of its manganese ore requirement from South Africa.