The TEX Report Topics < Ferro Alloys > Home
HOME >> Topics List >> October, 2009 >> 30 (Fri)
Domestic Prices Of Normal Ferro-Alloys In China Remain Unchanged In October
= Main Areas To Produce Ferro-Alloys In China Are Moving To Raise Electricity Fees
The domestic prices of normal ferro-alloys in China for October of 2009 have continued on a weak tone, following the same in September. The prices of Chinese ferro-silicon and silico-manganese in October have maintained the similar levels to those in September but domestic prices of high carbon ferro-chrome and such special ferro-alloys as ferro-molybdenum and ferro-vanadium to be consumed to produce stainless steel and special steel have been depressed considerably in October, owing to a fall of the international prices.

The output of crude steel in China for September of 2009 was 50.711 million tons, which decreased by approximately 3% compared with that (52.331 million tons) in the previous month of August and reflected a fall of prices for steel products in domestic market of China. Two major stainless steel companies of China implemented their maintenance in October, having caused to reduce their production of stainless steel, and the output of stainless steel in China for October - December quarter of 2009 is anticipated to have a decrease of 13% compared to that in the preceding quarter of July - September.

China produced 2,082,900 tons of ferro-alloys in September of 2009, having maintained a firm tone to increase the production, and the total quantity of ferro-alloys produced in China for January - September of 2009 had reached 15,194,500 tons, which at last increased by 4.4% in comparison with that (14,552,400 tons) in the same period of 2008. The increased production of ferro-alloys in China for September has become a pressure to influence on domestic prices of ferro-alloys.

A majority of ferro-alloys produced in China has consisted of ferro-silicon and silico-manganese, and domestic prices of these two ferro-alloys have returned to calm down from the beginning of October but are still awaiting to see the factors to become a power, which will be able to rebound domestic prices of ferro-alloys in China. However, in such main bases to produce ferro-alloys in China as Ningxia Hui Aut. Region, Qinghai Province, and so on, the movements to raise really electricity fees (to raise the fees for accommodation) are coming out to be materialized and a raise of electricity fees is thought to put an influence on prices of ferro-silicon and silicon metal, because a raise of the fees will cause to push up the cost by US$100 - 150 per ton.

The international prices of manganese ores to import into China as raw material for production of silico-manganese and high carbon ferro-manganese have clearly shown a tendency to rise toward the end of this year and, from the cost point of view, Chinese producers will certainly object to a further fall of prices for manganese ferro-alloys.

The price of lumpy manganese ore with Mn 44% to be imported by China for shipments in October - December quarter of 2009 has been stabilized on US$6.50 per Mn 1% CIF. Shippers' side has already finished to adjust their supply position through a substantial reduction in production of manganese ores and has now taken a bullish attitude toward the sales. The price of US$6.50 for October - December quarter as mentioned above has had a considerable rise of 65 - 80% in comparison with that for the preceding quarter of July - September. Therefore, by taking into account of the cost to increase, the lowered prices of manganese ferro-alloys in China have to bottom out. However, part of ferro-alloys producers in China have been currently suffering from the difficulties to collect the money for sale and, in order to comply with the necessity for financing, are now moving to be strongly interested in exports of ferro-alloys, which are paid in cash.

The domestic prices of ferro-alloys in China as of the 26th October of 2009 were <> ferro-silicon : CNY5,350 per ton (fallen by CNY350 per ton from that at the beginning of September), <> silico-manganese : CNY7,150 per ton (fallen by CNY650 per ton from that at the beginning of September), <> high carbon ferro-chrome : CNY7,100 per ton (fallen by CNY700 per ton from that at the beginning of September), <> ferro-molybdenum : CNY132,000 per ton (fallen by CNY18,000 per ton from that at the beginning of September) and <> ferro-vanadium : CNY92,000 per ton (fallen by CNY25,000 per ton from that at the beginning of September).
last modified : Thu 05 Nov, 2009 [10:02]
Copyright (C) 2004 The TEX Report Ltd. All Rights Reserved.