The EU and the USA demand to maintain the positive trend in the rolled metal market

Global demand for carbon steel may be supported by continued growth in Europe and the United States over the past month. However, new targets to cut CO2 emissions in China could slow steel production this year, while production is set to pick up elsewhere in Asia, French mining company Eramet said in its first quarter financial statement. The company also confirms a plan to produce 7 million tonnes of manganese in 2021 at the Moanda mine.

The report also notes that the European alloy market is experiencing a supply deficit and a rebound in sales and prices. In the first quarter, global carbon steel production decreased slightly by 0.5% compared to the fourth quarter of 2020, but increased by 7.2% compared to the same period last year, reaching 484 million tonnes. While production in China posted solid 13% growth over the first quarter of 2020, production in Europe and North America fell 0.4% and 7%, respectively.

“The expansion of production capacity for steel companies in these two regions is still unable to meet the growth in demand,” comments Eramet.

The company's turnover in the first quarter of 2021 increased by 8% compared to the same period last year and reached 838 million euros (1.013 billion dollars).

Eramet ore production increased 17% in the first quarter year-over-year to more than 1.5 million tonnes at Comilog's Gabon plant, driven by higher ore prices and higher sales volumes. Sales of manganese alloys in the first quarter also increased by 8% to 389 million euros, while sales of manganese alloys declined slightly in the first quarter of 2021.

In Europe, prices for manganese alloys increased in the first quarter of 2021 due to a lack of supply. This is predicted to have a positive impact on Eramet's turnover in the second quarter.

Meanwhile, Eramet notes a 9% YoY increase in ore consumption in the first quarter of 2021.

“Global manganese ore supply is adjusted to sustained 18% growth over the period, supported by volume growth in Gabon, resumption of production in Ghana and lower price pressures on manganese producers (compared to low production levels in Q1 2020, especially given the decline in production ore in South Africa). Supply /demand is almost balanced, and ore reserves in Chinese ports fell to 6.8 million tonnes by the end of March 2021 (equivalent to less than 12 weeks of consumption). " This is stated in the message.

In the first quarter, Eramet reported an 11% yoy increase in manganese ore transported. It is reported that sales increased by 21% and exceeded 1.2 million tonnes, and