Executive Interviews

Asian Metal: Hello Erik, welcome to the interview by Asian Metal. To start, could you briefly introduce your company?

Erik Eriksson: Scandinavian Steel was founded in 1958, when many small steel mills in Sweden needed to export their products to other parts of the world. To meet this need, Scandinavian Steel was established as an export arm. At that time, we mainly sold steel produced in Scandinavia, through which we gradually built extensive international connections. Today, our business is no longer limited to steel exports—we have grown into a distributor and trader of metals and related products, also procuring raw materials for the steel industry. In addition to Scandinavia, our major business regions now include Europe, Korea, China, and South America.

Asian Metal: How did manganese metal prices perform in the second quarter of 2025? And what was the situation in the first quarter in terms of price and demand?

Erik Eriksson: Manganese metal prices remained largely stable. Prices increased by about 5–6% at the beginning of the first quarter and then leveled off. The second quarter saw a slight increase, after which prices flattened. Compared with 2021, when prices surged, and 2022, when they fell significantly, this year’s fluctuations have been minimal. However, the limited volatility has also resulted in thin margins, leaving traders in a rather difficult position.

Asian Metal: How are European market participants responding? What are the main reasons behind the cautious attitude among European traders this year?

Erik Eriksson: We have observed that European buyers are extremely cautious. Regardless of whether the offers are high or low, they are reluctant to purchase. There are two main reasons: First, the delivery time is relatively long. Shipping from China to Rotterdam takes around 60–75 days. Given the current stable prices and the risk of potential declines, building up inventory carries significant risks, as it typically takes about 90 days to receive the cargo. In contrast, shipping from Japan or Korea is much faster, with far lower price risks before arrival. Second, tariff uncertainties make traders hesitant. If material is shipped to the U.S. and additional tariffs are imposed, costs could surge. On the other hand, if tariffs are suddenly lifted, market prices could fall. This type of uncertainty is costly, prompting traders to delay purchases.

Asian Metal: How long do you expect prices to remain at their current levels? If manganese prices stay unchanged, how will traders adapt?

Erik Eriksson: Prices this year are slightly higher than in previous years. We expect no major changes over the coming months, though in the long run prices may decline slightly due to global overcapacity. If producers limit output, however, the market could remain stable. Even if prices continue to hover around USD 1,900/mt FOB China, we will still keep some inventory on hand. This ensures that we can meet urgent customer needs, since shipping from China to Europe takes considerable time.

Asian Metal: How has manganese demand in the European market been in the first half of 2025? How does it compare with last year?

Erik Eriksson: While European steelmakers continue to complain about weak steel prices, overall consumption of upstream products has been fairly steady. From January to May this year, China exported about 36,000 tons of manganese metal to Europe—an average of 7,200 tons per month, or roughly 21,000 tons per quarter. This represents a decrease of about 10% compared with the same period in 2024. Over the same period, however, China’s global exports dropped by around 26%, which suggests that Europe has performed relatively well. That said, some material shipped to Europe was later re-exported elsewhere. Rotterdam, as a major logistics hub, serves as a storage and transit point, so not all material imported into Europe is consumed locally.

Asian Metal: What is your outlook for demand through the end of 2025? What are European consumers focusing on at present?

Erik Eriksson: We expect demand to remain broadly stable. At present, there are no signs of a decline in manganese metal consumption in Europe. Recently, Europe’s defense industry has received significant investment, but this has had little impact on manganese consumption. In recent years, sustainability and transparency have become increasingly important topics. Many European steel mills now ask about material traceability, and to address this, we publish an annual sustainability report.

Asian Metal: Are other countries or regions showing stronger demand for manganese metal?

Erik Eriksson: China, Japan, Korea, Europe, and Russia are the top five consuming regions. We do not sell manganese metal to China, nor do we conduct business with Russia, so our focus is primarily on Japan, Korea, and Europe. As for South America, demand is relatively limited. In terms of price influence, China remains the most critical market, as last year Chinese steel mills consumed more than 60% of global manganese metal output.

Asian Metal: Does the company have any new strategies or plans for 2025?

Erik Eriksson: The manganese market is not moving very quickly at present, but we are actively expanding cooperation, strengthening our relationships with both producers and consumers. We are also exploring ways to reduce costs and improve logistics solutions, with the aim of enhancing profitability and increasing market share.

Asian Metal: Thank you very much for sharing your insights!

Erik Eriksson: Thank you.