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| Market Tendency On Imports Of Ferro-Alloys At 31st May 2006 |
| = Price Of Chinese Ferro-Silicon Is Still Rising For Scarcity Of Actual Cargoes |
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The market tendency by item on imports of ferro-alloys into Japan at the 31st May of 2006 is as follows ; <> General view = It is now marked how does the Central Government of China take their stance for exports of ferro-alloys, because a self-willed part of the exports intended by the Government has appeared. Under this situation, a scarcity of Chinese ferro-silicon has caused a tension on supply of this ferro-alloy at present. The cargoes of Chinese ferro-silicon already contracted with electric furnace mills in Japan for shipments in April - June quarter have now included an anxiety for its deliveries and the trading companies concerned are unable to hide a feeling of restlessness for fulfillment of the existing contracts. It is thought that price of Chinese ferro-silicon has surged at once from last week. <> Ferro-silicon = The quantity of ferro-silicon imported from China into Japan in January - April of 2006 was 121,000 tons, which shared 76.6% of the whole import. Apart from Brazilian ferro-silicon sold to regular consumers in Japan under long term contracts, the supply of ferro-silicon to the free market of Japan depends only on Chinese ferro-silicon. Under the circumstances, Chinese shippers have taken a bullish attitude towards their sales of ferro-silicon and the parties concerned in Japan have been turned around by this aspect. Some of trading companies said that, provided the actual cargoes are surely delivered as booked, they are prepared to contract Chinese ferro-silicon at US$750 - 760 per ton CIF Japan or even at US$750 per ton FOB China. Accordingly, price of ferro-silicon has been confused to a considerable extent and a rise of price for Chinese ferro-silicon to the level of US$800 per ton is within a hailing distance. It is still opaque up to when does the Central Government of China, investigated environmental pollution in the two areas of Inner Mongolia Aut. Region and Ningxia Hui Aut. Region, continue their campaign to purge air pollution, and this matter has caused to arise an anxiety in the market. For a reference, Nippon Steel held on the 31st of May a tender to purchase 3,000 tons of ferro-silicon and it is marked to know an issue of this tender. <> Silico-manganese = The quantity of silico-manganese imported from China into Japan in January - April of 2006 had shared 64.2% of the whole import. This ratio of the omnipresence for Chinese silico-manganese is not so large as that of Chinese ferro-silicon and, accordingly, this matter is a factor, having stabilized price of Chinese silico-manganese in Japan. Namely, the sources to import silico-manganese into Japan have still diversified. The existences of Ukraine, Kazakhstan and Australia are not negligible. However, reflecting a shortage of ferro-silicon, price of Chinese silico-manganese is in the direction to benefit to some extent. There will be a possibility that the usage of ferro-silicon combined with high carbon ferro-manganese may be shifted to use only silico-manganese. In addition, the content of silicon in silico-manganese is a merit for usage of silico-manganese. Chinese silico-manganese is now being offered at US$645 - 655 per ton CIF Japan without seeing any substantial movement but an atmosphere in the market is a rise of US$5 per ton. <> Charge chrome = The production of stainless steel in Europe has been on a very favorable tone and European mills have been asking to ship more South African charge chrome. In order to avoid a higher fee of electric power applied to winter season of South Africa, South African producers have planned to decrease their production of charge chrome in this season but, when the negotiations on price of charge chrome to be shipped in July - September quarter are expected to secure a rise of 5 - 7 US-Cents per lb., some of them are supposed to have an intention to loosen somewhat an extent of the cutback. South African producers are thought to have judged that a higher fee of electric power in winter time of South Africa is estimated to push up the cost by 5 US-Cents per lb. and, therefore, a merit is seen in an increase of the production. Since Inco avoided a strike, an issue of the temporary demand for nickel-based stainless steel has to be worried somewhat but, at all events, it seems to be ceratin that the production of stainless steel, mainly in Europe, will be maintained on a high level in July - September quarter. <> Silicon metal = It is anticipated that the negotiations with aluminum alloy plants in Japan on price of Chinese silicon metal with 5.5.3 grade for shipments in July - September quarter will be settled during this week to next week, but a level of the price to be settled is not known yet. Spot price of Chinese silicon metal with 5.5.3 grade is being offered at US$950 - 970 per ton CIF Japan ( the price of US$920 - 930 CIF as described in The Tex Report dated May 16, 2006 was not correct ). In comparison with a scarcity of ferro-silicon, the supply situation of Chinese silicon metal has been felt with a certain margin but silicon metal is a similar silicon-based product to ferro-silicon and, therefore, the parties concerned have watched carefully about an issue of the regulations for environmental pollution implemented by the Central Government of China. <> Manganese metal = A fall of price for Chinese electrolytic manganese metal has calmed down and has been moving on a low level but a power to rebound price of this metal is weak. Chinese electrolytic manganese metal is now being offered at US$1,150 - 1,170 per ton CIF Japan, having remained unchanged. The capacity to produce electrolytic manganese metal in China as of 2005 is estimated at 1,170,000 tons on an annualized base and China actually produced 570,000 tons of this metal in 2005, including 300,000 tons exported from China, indicating an excess of the facilities. Accordingly, the constitution of Chinese electrolytic manganese metal has a tendency to be affected by a pressure of the supply and an extreme rise of price for this metal is not expected. <> Molybdenum = China is still a wild card for molybdenum business but it is hardly possible to grasp an exact situation of molybdenum production in China and, consequently, an unstableness of molybdenum prices has still continued. The output of molybdenum at mines in Luoyang area of Shaanxi province is small in comparison with that in Huludao area of Liaoning province but, reflecting an information that the production at molybdenum mines in Shaanxi province has been decreased, price of Chinese ferro-molybdenum has risen to a level of US$62 - 63 per kg. CIF Japan. Following this rise of price for ferro-molybdenum, the current price of Chinese molybdenum oxide is US$27 per lb. CIF Japan. <> Ferro-vanadium = The price of ferro-vanadium at present is in the range of US$40 - 41 per kg. CIF Japan and a rise of price for ferro-vanadium has made a pause. Price of ferro-vanadium has been moving in the boxed range but a differential of prices between a higher side and a lower side has narrowed gradually. |
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| last modified : Tue 06 Jun, 2006 [10:22] |
