Financing Africa-China manganese trade – sign of Covid19 recovery?

30 April 2020
Category: Business | Funds

In a positive sign for African mineral exporters and perhaps as a bellwether for a return by Chinese buyers to world commodity markets more generally, Scipion is financing a significant shipment of manganese ore from the Ivory Coast to China.China’s return to markets following its Covid19 lockdown will not only be of huge significance for many African nations during the period of recovery from Covid19 (with China being a vital export destination and means of generating key FOREX) but will also have a significant impact on wider global commodity prices as well as logistics activity.

Furthermore, given the use of manganese in the production of steel, the return of Chinese buyers suggests an uptick in construction activity in China and beyond will not be far behind. We view this as a healthy step in the wider economic recovery which appears to be gathering pace as countries ease lockdown restrictions.