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| Negotiations With EF Mills On Yen Prices Of Ferro-Alloys For Shipments In Q3 / 08 Have Been Settled |
| = Yen Price Of Ferro-Silicon Has Risen By Yen 100,000 / Ton For Scarcity Of Actual Cargoes |
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The negotiations with electric furnace mills in Kanto area of Japan on Yen prices of bulk ferro-alloys (ferro-silicon and silico-manganese) for shipments in July - September quarter of 2008 have passed its peak by last week and the levels of these prices have been settled. Namely, owing to the fact that US$ price of ferro-silicon (mainly Chinese product) has steeply risen during a period of May - June, Yen price of ferro-silicon has risen by Yen 100,000 per metric ton on the basis of delivery to mill. Therefore, new prices of ferro-silicon contracted with electric furnace mills for July - September quarter are in the range of Yen 257,000 - 263,000 per metric ton delivered to mills. This is the largest rise in its history. The largest rise of Yen price for ferro-silicon arisen in the past years was risen from Yen 130,000 to Yen 190,000 per ton during a period of 1973 to 1974, when the first oil crisis emerged, but main factor, having achieved the historical largest rise in this time, is a scarcity of actual cargoes (caused by delayed shipments and revisions of prices under the outstanding contracts). In view of the fact that prices of ferrous scrap, heavy oil and coke have risen to a considerable extent, electric furnace mills have attached the importance to ensure their purchases of raw materials for deliveries in July - September quarter and, by taking a chance on this market situation, a substantial rise of price for ferro-silicon has been successfully materialized. On the other hand, while electric furnace mills are main consumers of silico-manganese, an extent to rise Yen price of silico-manganese for July - September quarter has been restricted. An actual rise of Yen price for silico-manganese has been settled by approximately Yen 10,000 per metric ton and, accordingly, new prices of silico-manganese contracted with electric furnace mills for July - September quarter came to be in the range of Yen 262,000 - 275,000 per metric ton delivered to mills, having had a small rise from those (Yen 255,000 - 260,000) fixed for April - June quarter. This rise of Yen price for silico-manganese is due to a current movement of the exchange rate of Japanese Yen against Us-Dollar, having weakened from US$1.00: Yen 103 to US$1.00 : Yen 107. US$ price of silico-manganese to import into Japan offered from China in May to June was lower than US$2,300 per metric ton CIF, which has actually fallen by US$100 per ton from that prevailed previously and caused a small rise of Yen price for July - September quarter. On the other hand, since the domestic price of ferro-silicon in China has risen to a substantial extent, some of Chinese suppliers once offered silico-manganese at a higher price than US$2,500 per metric ton CIF Japan and, in order to secure actual cargoes of this ferro-alloy, the case to pay US$2,530 CIF for purchase came up in the first half of June. At present, the market price of silico-manganese has fairly calmed down and fallen to a level of US$2.100 - 2,200 CIF. The price of manganese ore as raw material for shipments to China in July - September quarter of 2008 has been settled by a steep rise but Japanese side has already secured the quantity of silico-manganese to be required in July - September quarter by the stocked cargoes at warehouses in wharves and steel mills and, therefore, it is wondered how extent is a higher price offered from Chinese side workable on the actual business in Japan. A challenge to induce Japanese consumers to purchase silico-manganese at high prices offered from Chinese side will proceed for the time being. The movements of Yen prices for ferro-silicon and silico-manganese contracted with electric furnace mills on quarterly base during January - March quarter of 2007 to July - September quarter of 2008 were as per the table shown below ; |
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| last modified : Thu 03 Jul, 2008 [10:43] |
