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Market Tendency On Imports Of Ferro-Alloys At 31st October 2007
= Price Of South African Charge Chrome For Q4 / 07 Will Be Settled In This Week
The market tendency by item on imports of ferro-alloys into Japan at the 31st October of 2007 is as follows ;

<> General view = An opinion, which the Central Government of China will raise again the duties on exports of ferro-alloys from November, was once spread over the market and is now being disappeared but a live charcoal to make a fire has been still left in the market. The private companies concerned ( China Ferro-Alloy Producers Association ) has voiced that the measure to raise the duties on exports of ferro-alloys is unable to stop an increase of the exports, enabling the officers concerned in Chinese Government to recognize newly the aspect, and it is marked to see the next countermeasures to put the brake on exports of ferro-alloys from China. However, the intelligent people concerned with China have a view that, by taking into consideration of the important affairs which "National People's Conference " held once for 5 years in the middle of October at Beijing City was over and the next subject is to arrange new leading officers at provincial governments, the matter to raise export duties is thought to be under the circumstances to carry over to next year.

<> Ferro-silicon = Price of ferro-silicon has remained unchanged. Chinese suppliers are currently offering ferro-silicon at US$950 - 980 per ton CIF Japan. The Yen price of ferro-silicon contracted with electric furnace mills for shipments in a single month of November has been rolled over. The quantity of ferro-silicon exported from China in September was checked a power to increase and decreased to a lower level than 100,000 tons per month. The total quantity of ferro-silicon exported from China in July - September quarter had a decline of 20% in comparison with that in April - June quarter when China was in a hurry to export ferro-silicon in preparation for a raise of the export duty. In view of the actual quantity exported from China in July - September quarter, the measure, having raised from June the duty on exports of ferro-silicon by 5% to 15%, has been thought to be effective.

<> Silico-manganese = Price of silico-manganese has been now formed to move in accordance with that prevailing in domestic market of China. A Chinese steel company recently held a tender to purchase silico-manganese and the lowest price bidden was CNY9,500 ( corresponding to US$1,270 ) per ton. This aspect has reflected the price offered for export. The principle, which a fluctuation of price for Chinese silico-manganese seen in domestic market manages the price to offer for export, has been reconfirmed, because Chinese steel mills are now in the market to purchase silico-manganese as the countermeasures for winter season. The price of Chinese silico-manganese offered for export to Japan has risen to a level of US$1,450 - 1,500 per ton FOB China and its export price on CIF base is necessary to add US$30 - 40 per ton to the FOB prices as mentioned above. Therefore, the current price of Chinese silico-manganese has now approached to a level of US$1,500 per ton CIF Japan as recorded in May to June of 2007. Being stimulated by an information to raise soon the export duty, price of Chinese silico-manganese has risen again to a substantial extent and, because of an expansion of the demand for silico-manganese, the reality has risen price of Chinese product by US$350 per ton from the bottom one seen in July to August.

<> Charge chrome = The negotiations with stainless steel mills on price of South African charge chrome for shipments in October - December quarter of 2007 had a rough passage but are anticipated to be settled in this week. Major stainless steel mills said that a terminal point for its settlement is supposed to be moderate, but the contents are still fuzzy. It has been informed from this week that stainless steel mills in Western Europe are going to settle prices of ferro-chrome for shipments in October - December quarter by the roll-over for charge chrome and by a rise of 10 US-Cents per lb. for high carbon ferro-chrome. It is a rare case that the insistencies on price of charge chrome made by both parties of buyers and sellers have opposed flatly each other, and it is marked, therefore, to see an issue of the negotiations.

<> Low carbon ferro-chrome = It is an extraordinary matter that price of low carbon ferro-chrome for shipments in October - December quarter has been settled in an earlier time than that for charge chrome. The background is a tightness on supply of this ferro-alloy. The prices of low carbon ferro-chrome for October - December quarter have risen by 20 US-Cents per lb. compared with those in the preceding quarter of July - September and, consequently, new prices are 185 US-Cents per lb. CIF Japan for carbon 0.1% max. material and 180 US-Cents CIF for carbon 0.25% max. material respectively, which have been settled through negotiations in many cases.

<> Manganese metal = Reflecting a dullness on sales of manganese metal in domestic market of China, the price of electrolytic manganese metal to be exported from China has continued to weaken and already fallen to a lower level than US$3,000 per ton CIF Japan. The lowered price of US$2,950 per ton CIF Japan has been sporadically offered. The cost to produce electrolytic manganese metal in China is said to be US$2,500 per ton and, therefore, Chinese producers are supposed to have still a durability but price of this metal is thought to fluctuate to a considerable extent. It is the case since March of 2007 that price of Chinese electrolytic manganese metal has fallen to a lower level than US$3,000 per ton CIF Japan, which has come to nearly half of the highest price ( US$5,800 CIF recorded at the end May of 2007 ).

<> Silicon metal = Price of silicon metal has continued to fall. The current price of this metal offered from China is in the range of US$1,300 - 1,400 per ton CIF Japan. This fall of price for silicon metal is due to a weak tone of price in domestic market of China. However, it is said that Chinese producers still have kept a profitability for production of silicon metal. Although there was the case which, being stimulated by a steep rise of price for silicon metal, Chinese companies had once concentrated to produce silicon metal, the persons concerned in China have analyzed that the real reasons are thought to be a reluctance for sales in expectation of a further rise of the price and an increase of the stocks ( difficulties for financing ). Accordingly, Chinese suppliers are in a hurry to sell silicon metal at discounted prices.The price of silicon metal had once risen to the highest level of US$1,650 per ton CIF Japan and, therefore, the current price of this metal has fallen by US$250 - 300 per ton compared to the highest one as mentioned above in the course of only 3 to 4 weeks.

<> Molybdenum = Owing to an information which Chinese Government will raise the duty on exports of molybdenum products from November, prices of Chinese molybdenum products have risen from last week, mainly for ferro-molybdenum. Dealers are now offering Chinese ferro-molybdenum at US$74 - 75 per kg. CIF Japan, having risen by US$2 per kg. compared with that prevailed in the middle of October. However, the matter to raise the duty on exports of molybdenum products from November has become uncertain at present and, therefore, it seems to be inevitable to revise these risen prices of molybdenum products. Also, the Central Government of China has adopted the system to allocate the quantities of molybdenum products to be exported from China in the second half of 2007 and, consequently, the exports of molybdenum products from China in 2007 will be not influenced. However, since molybdenum business has come to a sellers' market, there is a foundation that the enforcement to raise the duty on exports of molybdenum products will immediately cause to connect with the case to charge a raise of the export duty for account of buyers.

<> Ferro-vanadium = Dealers are currently offering ferro-vanadium at US$37 - 38 per kg. CIF Japan, having fallen by US$0.50 per kg. for an exhaustion to keep the steeply risen price.
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last modified : Tue 06 Nov, 2007 [11:48]
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