Manganese Ore Market Trends

Growth Drivers

• Growing Constructional Activities- Steel demand rises proportionally as global infrastructure projects and building activities increase due to causes such as growing urbanization, population growth, and continued infrastructure development, particularly in developing countries. This growth in building demands a greater supply of manganese ore to meet the growing demand for robust and strong steel products. Building construction has grown in recent years, and it is expected to grow steadily further. According to the United Nation, the global population will stand at around 10 billion by 2050, and the number of buildings will need to increase to accommodate this population. It is anticipated that 1.6 billion new buildings will be built by 2050, for a total of 2.6 billion buildings worldwide.
• Rapid Transition to New Technology - Automation, data analytics, and remote monitoring have all aided mining operations. These technological advances improve efficiency, safety, and the ability to extract ore from deeper and more challenging sources. High-tech equipment and processes are used to convert manganese ore into usable items. Materials science and mineral processing advancements have optimized manganese beneficiation, reducing waste and increasing purity. Moreover, real-time data reduces the time required for various mining phases and decision-making intelligence. To identify rock faces and classify soil, remote sensing data is used.
• Growing Production of Batteries - Over the next 10 years, rising electric car sales and the development of novel battery chemistries are likely to drive up demand for manganese in batteries. The global EV sales, which include battery-electric cars (BEVs) and plug-in hybrids (PHEVs), are going to top 14 million units by the end of 2023. This amounts to a 34% increase in EV sales over 2022. Adding manganese, an ingredient required by nickel cobalt manganese (NMC) cathodes, is a relatively inexpensive technique for expanding the range of electric vehicles. New battery compositions are expected to require even more manganese. Automotive sectors are progressively utilizing manganese-intensive battery chemistry due to its cheaper cost structures and improved performance.

Challenges

• Indefinite Balance Between Supply and Demand - The balance of supply and demand is one of the most prominent factors influencing manganese ore pricing. When the demand for a commodity exceeds the supply, the price of the product rises. In the case of manganese ore, the iron and steel sector has made major demand for the product. Furthermore, as battery production increases, so does the demand for high-purity manganese ore. However, there is still a limited supply of battery-grade manganese ore available globally, which can have a substantial impact on battery product prices.
• Growing import prices will affect the supply chain
• Adverse situations caused by restricted government policies