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Price Of Silico-Manganese Is Moving As Domestic Price In China Has Bottomed Out
= Chinese Steel Mills Are Going To Purchase Raw Materials In Preparation For Lunar New Year
The domestic price of silico-manganese in China once continued to fall but has at last bottomed out. The current price of silico-manganese in domestic market of China has rebounded to CNY7,500 per metric ton ( US$1,100 ). On the basis of this latest domestic price, the price of Chinese silico-manganese to be offered for import into Japan has come to US$1,400 per metric ton CIF Japan. For financing in the last month of year, realization sales are anticipated to appear sporadically but a trend of price for Chinese silico-manganese will be on upswing.

On the occasion of having finished the Beijing Olympic Games in August, steel mills of China have taken steps to reduce drastically their stocks of raw materials, having resulted in a confusion of prices for ferro-alloys, but the purchases of raw materials by Chinese mills have shown a change from the beginning of December.

Reflecting a sharp fall of prices for ferro-alloys as seen from September of 2008, steel companies of China implemented their drastic de-stocking of ferro-alloys and this action has accelerated to fall prices of ferro-alloys. Therefore, some of Chinese steel mills had once managed their consumption of ferro-alloys by the stocks for 48 hours but are now changing their stocks of ferro-alloys to a scale for one week. However, when the Beijing Olympic Games were held, Chinese mills had held their stocks of ferro-alloys for consumption in one month and, from this point of view, the current stocks of ferro-alloys at Chinese mills have been still placed on a low level.

Accordingly, Chinese enterprises are supposed to be now recovering their production of ferro-alloys from a low operation rate of 10 - 20% arisen in October to November of this year. However, price of silico-manganese has been partially influenced by a fluctuation of price for manganese ore imported into China but an outlook for price of manganese ore is still unable to foresee at present.

As for manganese ore, China imported approximately 7,000,000 tons of manganese ore in 2008, 1,000,000 - 2,000,000 tons of which have been stocked at wharves in discharging ports. Under the circumstances, major manganese mines in overseas countries are delaying to propose Chinese customers their price idea of manganese ore for shipments in January - March quarter of 2009.

For a reference, a level of price for manganese ore offered by major manganese mines for shipments in October - December quarter of 2008 was US$16 per Mn 1% CIF China for medium grade ore and, when manganese ferro-alloys were produced in China by using manganese ore at this price level as raw material, all of Chinese companies, producing manganese ferro-alloys, should to be suffered from a loss. Therefore, the actual business to import manganese ore into China for shipments in October - December quarter is so far not concluded. Accordingly, the price of manganese ore to import into China for shipments in January - March quarter of 2009 is still not foreseeable.

On the other hand, price of Chinese electrolytic manganese metal has bottomed out and turned to rise from November as the earlier case than that of ferro-silicon and spot price of this metal at present has risen to a level of US$2,450 - 2,550 per metric ton FOB China. In view of a tightness on actual cargoes of electrolytic manganese metal in China, price of this metal is anticipated to rise further. The price of Chinese electrolytic manganese metal offered on the 10th of December by Japanese trading companies to their consumers is US$2,500 per metric ton CIF Japan. According to an information from China, the market price of electrolytic manganese metal in Europe is on a level of US$2,550 - 2,650 per metric ton on DDU Rotterdam warehouse base.
last modified : Wed 17 Dec, 2008 [10:21]
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