South Africa, the world’s largest exporter of manganese ore shipped a record 9.3 MMT (+0.5 MMT/+6% y-o-y) in the first five months of 2022. South Africa is estimated to hold more than 70% of the world’s total manganese reserves, from which it typically supplies 50-55% of global exports in any given year.

In 2022 to date South African miners have increased their global contribution, supplying over two-thirds of international trade, a figure that could probably increase but for internal logistical transportation issues with rail transport, like those experienced by coal shippers within South Africa.

Manganese is a key ingredient in the production of stainless steel, so it is no surprise that over 60% of South African product is transported to China. In the first five months, South Africa exported 5.5 MMT to China like in 2021 as Chinese industrial production remains largely subdued with Q2 GDP only expanding by 0.4%.

However, South African manganese ore exports to India which nearly doubled y-o-y to 3.4 MMT in 2021, continues to grow with 1.6 MMT (+0.3 MMT y-o-y) shipped in the first five months. Shipments to regular customers Japan, South Korea, and Singapore at about 0.3 MMT each to date are fairly close to 2021 figures, but the biggest exponential growth is to Norway which at 0.3 MMT is already nearing last year’s annual figure of 0.4 MMT.

7.9 MMT (85%) of this year’s South African manganese trade has been transported on Supra-Ultramax tonnage up from 7.6 MMT in 2021; the balance is carried on Panamax (1 MMT) and Post-Panamax vessels (0.4 MMT), with almost all of these larger shipments discharged in China.