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Spread - manganese alloys
What it is
Silico-manganese and ferro-manganese are the deoxidising and alloying additions used in virtually all steelmaking. The spread is the gap between manganese ore plus power and coke costs, and the alloy price
Unlike ferrochrome, manganese alloys serve all steel rather than only stainless
Impact on industries
- Broad demand base across carbon and alloy steel makes volume less dependent on any single steel segment
- Manganese ore is largely imported, so the spread carries commodity and currency exposure on the input side
- Low barriers relative to ferrochrome mean more producers and thinner spreads, with capacity idling when prices fall
- FTA imports of Indonesian and Vietnamese alloys at zero duty undercut domestic realisation, a recurring industry complaint