Manganese market on edge after S. Africa rail line shut

Global manganese markets could rebound this week, supported by the shutdown of a key South African export rail line.

Transnet last Friday suspended all rail operations on the Cape Corridor, connecting South Africa’s manganese mines in the Northern Cape to the ports of Gqeberha (Port Elizabeth) and Ngqura, due to damage caused by severe weather.

“The rail formation has been swept away, resulting in major damage to the infrastructure and overhead equipment,” Transnet said in a statement.

On Monday, Transnet and industry officials said the line was still closed. No timeline was given on when operations would resume.

If the rail line is shut for a prolonged period, it could spark a further price rally in global markets, traders said.

After the doubling in prices following the halt in GEMCO exports last March, manganese prices are coming under renewed pressure from weak ferroalloys demand.

High-grade manganese material eased to $8.85/dmtu CIF Tianjin in the week ending on 12 July, down from $8.98/dmtu in the previous week and snapping a three-week rally, according to market sources.

Lower-grade semi-carbonate material continued to fall with 36.5% manganese slipping to $5.18/dmtu from $5.36/dmtu in the previous week. The market has fallen for five straight weeks, dropping 19% from 2024’s high of $6.41/dmtu reached in mid-June.

The differential between the two grades widened to minus $3.67/dmtu from minus $3.62/dmtu in the previous week. Before GEMCO’s exports were halted in mid-March, the differential was just minus $0.40/dmtu.

In South Africa, the 36.5% semi-carbonate price dropped to $4.34/dmtu from $4.56/dmtu in the previous week.

For India, CIF offers followed similar lines. Offers for August-September loading higher grades (44% and above) eased to around $9.00/dmtu, from $9.16/dmtu in the previous week and that for 36.5% content eased to $5.25/dmtu, from $5.36/dmtu.