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| Market Tendency On Imports Of Ferro-Alloys At 12th August 2008 |
| = Market Prices To Move After Beijing Olympic Games Are Interested In Seeing |
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The market tendency by item on imports of ferro-alloys into Japan at the 12th August of 2008 is as follows ; <> General view = Since the two big events of long summer holidays in Japan as usual and the Beijing Olympic Games held currently in China are going on at present, businesses to import ferro-alloys into Japan have been depressed. Therefore, it is very interested in seeing how do market prices of ferro-alloys change after these events are over. However, there is a view in the market that Japanese consumers will take an attitude to hold back their purchases of silico-manganese and ferro-silicon until the end of September, because plenty cargoes of these two ferro-alloys have been stocked at yards in consumers and at warehouses in wharves. <> Ferro-silicon = Price of Chinese ferro-silicon has fallen to a level of US$1,700 - 1,750 per metric ton FOB. However, the floor price for export of ferro-silicon set up by customs-offices has still remained on US$2,000 per ton FOB and, accordingly, even if the contract to export ferro-silicon at US$1,700 FOB is concluded, a factor to trouble with customs-office has been still left. This means that there is no guarantee to be able to export Chinese ferro-silicoin on this price level without any problem. <> Silico-manganese = The inquiries for silico-manganese from Japan have stopped, resulting in no substantial fluctuation of price for this ferro-alloy. However, the factors to raise production costs of silico-manganese (by a steep rise of price for manganese ore as raw material and an increase of fee for electric power) are considerable. Therefore, the current price of Chinese silico-manganese offered for export is rising little by little and the circumstances are causing Chinese producers to be easy to accumulate a frustration. Chinese suppliers are now offering silico-manganese at US$2,350 - 2,400 per metric ton FOB, having remained as nearly unchanged from that in last time, and a straight and steep rise of price for silico-manganese as seen previously is difficult to arise. As far as Japanese side has been in the state of sleeping, it seems to be hard to have a sudden and straight rise of price for silico-manganese. <> Charge chrome = The market situation of high carbon ferro-chrome (charge chrome) has changed to a considerable extent. Spot price of this ferro-alloy has fallen to a lower level than its benchmark price. Therefore, the circumstances in Europe have turned to a complication, in which a possibility to maintain contract price of charge chrome on a high level for shipments in October - December quarter is wondered. Some of stainless steel companies in Japan are thinking of the matter to revise price of South African charge chrome for shipments in October - December quarter. The movements against this revision of price for charge chrome to be taken by South African producers are so far not known but, in view of the fact that stainless steel mills have set up the structure to decrease their production of stainless steel in order to cope with a sharp fall of nickel price, there is an atmosphere in the market that new price of 205 US-Cents per lb. of Cr on DDP base settled with European mills for shipments in July - September quarter is difficult to maintain for a long period. The facilities to increase production of ferro-chrome were constructed in South Africa and commissioned in July - September quarter. Consequently, the capacity to produce ferro-chrome in South Africa has been increased by 250,000 tons per annum. <> Manganese metal = The activities to purchase electrolytic manganese metal from China are supposed to have made a pause and Chinese producers, who had once offered electrolytic manganese metal at higher prices for Japan, are now disappearing. It is not known yet whether Japanese steel companies have purchased Chinese electrolytic manganese metal on a substantial scale or not, but the current price of this metal offered from China is on a level of US$4,000 per metric ton CIF Japan. <> Ferro-vanadium = The market price of ferro-vanadium had once fallen to a lower level than US$60 per kg. of V CIF Japan but traders, who have judged as US$60 is the bottom, are now offering ferro-vanadium at US$63 - 64 per kg. of V CIF Japan, having turned to rise together with a higher price of US$68. This is a sudden and steep rise of price for ferro-vanadium in comparison with a lower price than US$60 prevailed on the end of July. Xstrata Alloys of South Africa has decreased their vanadium production but Evraz of Russia has increased their production of vanadium. On the other hand, China exported 3,215 tons in material of ferro-vanadium in the first 6 months (January - June) of 2008, having had a considerable increase of 2.6 times compared with that in the same period of 2007, and an increase on exports of Chinese ferro-vanadium in the first half of 2008 was remarkable. A scale of the vanadium market is still small as usual and, therefore, it is an easy matter that an intention by traders has quickly and sensitively reacted to the world market of vanadium. <> Molybdenum = The quantities of molybdenum produced by major molybdenum companies of the world in the first half of 2008 are thought to have decreased somewhat. An anxiety for a tightness on supply of molybdenum has lain down on the bottom of the market and, accordingly, prices of molybdenum products have been maintained on high levels. Ferro-molybdenum is now being offered at US$79 - 80 per kg. of Mo CIF Japan. |
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| last modified : Wed 20 Aug, 2008 [11:32] |
