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| HOME >> Topics List >> August, 2009 >> 13 (Thu) |
| Price Of Chinese Ele-Mn-Met Has Risen Further For Favorable Demand From Domestic Market |
| = Price Offered For Export Has Risen To US$2,900 / Ton CIF Japan |
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Owing to the further and steeply risen price of Chinese electrolytic manganese metal in domestic market, the price of this metal offered for export has also risen further. At present, Chinese shippers are offering electrolytic manganese metal at US$2,800 - 2,900 per metric ton CIF Japan, having risen by US$100 - 200 per ton compared with that prevailed at the end of July. Also, the price of Chinese electrolytic manganese metal ruled in spring of this year (March to April) was US$2,400 CIF and, therefore, the current price has risen by approximately US$500 per ton from that in spring time. The factors, having maintained a firm tone of price for Chinese electrolytic manganese metal at present, are an expansion in domestic production of stainless steel as revived from April of 2009 and an extraordinarily risen price of nickel metal in recent time. Electrolytic manganese metal is used for production of 200 series stainless steel and the output of crude stainless steel in China for April - June quarter of 2009 came to 2.30 million tons, having increased by 30% from that in the preceding quarter of January - March. The quantity of 200 series stainless steel produced in China for April - June quarter had shared 23.3% of the whole output. Also, nickel metal is a rival for manganese metal and LME nickel price has risen to a higher level than US$20,000 per ton in August and the base to increase the demand for electrolytic manganese metal as a substitutive metal for nickel is becoming solid. As regards the cost for production of electrolytic manganese metal in China, ore price of manganese oxide for production of manganese ferro-alloys has risen to a considerable extent and spot price of this ore has currently risen to a level of US$7 - 8 per Mn 1% CIF China, which is encouraging price of manganese ore produced in China. Under the circumstances, current price of electrolytic manganese metal in domestic market of China has risen to CNY15,000 - 15,200 per ton ex. plant. The consumers concerned are going to feel the difficulties to secure actual cargoes of this metal on spot base. The cost to produce electrolytic manganese metal in China as of an early part of August is as per the table attached hereto. Price of electrolytic manganese metal in overseas markets is being improved gradually in comparison with that in China but a differential of prices between in China and in overseas markets is thought to be still wide. Japan imported 14,474 tons of electrolytic manganese metal in the first half (January - June) of 2009, including 11,038 tons of Chinese product. For a reference, Japan imported 33,509 tons of electrolytic manganese metal in the first half of 2008, including 30,143 tons of Chinese product. In particular, the excessive stocks of electrolytic manganese metal caused by a reduction in production of crude steel at major blast furnace mills in Japan have accelerated a depression on imports of electrolytic manganese metal into Japan. A major steel company in Japan had concluded the contract with a Chinese supplier to import 20,000 tons of electrolytic manganese metal for shipments in the fiscal year of 2008 (April 2008 to March 2009) but, because of an excess of the stocks, has reduced the quantity to be shipped in the fiscal year of 2009 to a small scale of only 1,500 tons and this aspect has put a substantial impact on exports of Chinese electrolytic manganese metal for Japan. However, being encouraged by the steeply risen price of electrolytic manganese metal in domestic market of China, the price of this metal offered for exports to overseas markets will be inevitable to rise accordingly and the inquiries to import electrolytic manganese metal as sporadically arisen will have to follow this risen price. On the other hand, in the same case as that of Japan, the business to export Chinese electrolytic manganese metal to European countries is expected to come up in the second half of 2009. The current price of Chinese electrolytic manganese metal in Europe is on a level of US$2,780 - 2,820 per metric ton on DDU base. |
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| last modified : Wed 19 Aug, 2009 [10:24] |
