One reader immediately reacted to my story on the reaction of Ferroglobe’s purchase of Glencore’s two European manganese smelters. I thought it was VERY interesting from an astute reader:
One winner is likely to be South32. They have always given Ferroatlantica very favorable discounts for Mn ore much to Eramet’s disgust. One would assume they would love to supply Dunkirk and Moi Rana as well. These two smelters were running on Vale and Assmang fines. I’m sure S32 would love to push Assmang out but the smelters will probably still use Vale ore sourced through Glencore, even if they don’t like it.
Assmang may also lose out on high-carbon ferromanganese sales in US if Glencore/Ferroglobe really pushes particularly if Eskom gets their 20% increase for next year and Malaysia is a long way away and freight rates are not cheap.