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Market Tendency On Imports Of Ferro-Alloys At 16th November 2009
= Domestic Prices Of Ferro-Alloys In China Are In Atmosphere To Stop Its Falls
The market tendency by item on imports of ferro-alloys into Japan at the 16th November of 2009 is as follows ;

<> General view = The output of crude steel in China for October of this year was 51.75 million tons as increased by approximately 1.04 million tons from that in the previous month of September. Also, China produced 2,255,000 tons of ferro-alloys in October of 2009, having increased by 8.3% compared with that in September, and has still maintained a basic tone to increase the production of ferro-alloys in China. The total quantity of ferro-alloys produced in China during January - October of 2009 reached 17.50 million tons, which had a substantial increase of 9.6% compared to that in the same period of 2008. On the other hand, domestic prices of bulk ferro-alloys (ferro-silicon and silico-manganese) in China have turned to remain unchanged during October to November. According to local news, China is anticipated to raise soon electricity fees and, therefore, it is supposed that Chinese producers are not in a position to reduce their sales prices of ferro-alloys to the lower levels than those at present.

<> Ferro-silicon = The cost to produce ferro-silicon has shared 50% by electricity fee and, accordingly, producers are so much interested in electricity fee to be paid by them. Domestic price of ferro-silicon in China has stopped to fall but part of the cargoes disposed at discounted prices in domestic market was shifted to export because of raising funds. A raise of electricity fees is being proceeded little by little in China mainly for adjustable electric power and, therefore, ferro-alloy producers in Ningxia Hui Aut. Region, Qinghai Province, and so on have adopted the structure to offer ferro-silicon only for a certain limited period, because the cost to produce ferro-silicon in China is estimated to increase by US$50 - 100 per ton for a raise of electricity fees. The current price of Chinese ferro-silicon offered for export to Japan is US$1,140 - 1,150 per metric ton FOB. There are factors to rise price of ferro-silicon but the parties concerned are still awaiting to have further news of this matter.

<> Silico-manganese = The price of lumpy manganese ore with Mn 44% to import into China as raw material for production of silico-manganese has still remained on a high level of US$6.50 per Mn 1% CIF. The price of this ore for shipment in January of 2010 is anticipated to stay at this high price. Under this situation at present, in view of cost-wise, Chinese producers have to incline to maintain their price of silico-manganese on the high level but, on the other hand, the competition with Indian silico-manganese has still continued. Chinese silico-manganese has been checked by Indian product and both products are now being offered at US$1,350 per metric ton CIF Japan, having remained unchanged.

<> Charge chrome = It is marked to see how does spot price of high carbon ferro-chrome (charge chrome) for China move but the current price of this ferro-alloy has continued on a weak tone. It was informed that the price of South African charge chrome, which a major stainless steel company in China has recently purchased with a large quantity, is supposed to be 78 US-Cents per lb. of Cr CIF. The production of stainless steel in China for October - December quarter of 2009 is scheduled to be reduced by 13 - 15% compared to that for the preceding quarter of July - September and, accordingly, this reduction of the production will be inevitable to put a substantial influence on the market price of charge chrome. The cost to produce high carbon ferro-chrome in China is estimated to be approximately 85 US-Cents per lb. of Cr and, in case of the contract to import charge chrome with a large quantity into China, the price to be contracted will be reduced to a lower level than 80 US-Cents as mentioned above.

<> Low carbon ferro-chrome = Chinese low carbon ferro-chrome with carbon 0.1% max. is now being offered at 165 US-Cents per lb. of Cr CIF Japan. However, China exported 21,000 tons of low carbon ferro-chrome in January - August of 2009, having decreased to 1/3 of that in the same period of 2008, and Chinese product has put less impact on the market.

<> Manganese metal = The production of 200 series stainless steel in China is supposed to be reviving and Zhangjiagang Posco Stainless Steel has placed an inquiry to purchase 1,900 tons of electrolytic manganese metal before suppliers. Therefore, the demand for manganese metal in China has brightened and the market movements in China were active during the end of October to an early part of November. Domestic price of electrolytic manganese metal in China is on a level of CNY13,300 - 13,500 per metric ton ex. plant at present, having remained unchanged. In view of a drought season to come soon, Chinese producers are in the direction to decrease their production of electrolytic manganese metal and may face a raise of fees for electric power to be generated at hydroelectric power stations. A raise of electricity fees is anticipated to be CNY0.02 - 0.05 per 1 KWH and, consequently, the cost to produce electrolytic manganese metal in China is estimated to have an increase of CNY200 - 300 per ton. An idea price of electrolytic manganese metal to be offered by Chinese producers for export is US$2,550 - 2,600 per metric ton FOB but, according to an information from Japanese trading companies, the price for export is on a level of US$2,550 - 2,600 per metric ton CIF Japan and a differential of prices between sellers and buyers is approximately US$50 per metric ton.

<> Molybdenum = Spot price of molybdenum oxide has stopped to fall in the first week of November after an interval of 3 months and, then, rebounded somewhat in last week, because the parties concerned, having ascertained to bottom out price of molybdenum oxide, are in the market. The prices of molybdenum oxide offered by dealers on the end of last week were in the range of US$11.40 per lb. of Mo as a higher side and US$10.80 as a lower side. Consequently, the second lowest price of molybdenum oxide was US$10.60 per lb. of Mo recorded in the first week of November. The first lowest price of molybdenum oxide as recorded in the middle of April of this year was US$7.70 per lb. of Mo, which is not payable for the cost at producers in the western countries. However. the second lowest price of molybdenum oxide has been settled down on the level as forecasted. The reason, why price of molybdenum oxide had steeply fallen to the lowest level in April of this year, was due to the disposals of the stocked cargoes at discounted prices by traders, producers and processors but a sharp fall of price for molybdenum oxide as seen in this time has been caused by a disappointment, which the demand for molybdenum in China and Europe is unable to recover as expected.

<> Ferro-vanadium = Dealers are currently offering ferro-vanadium at US$23.00 - 24.50 per kg. of V CIF Japan, having remained unchanged.
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last modified : Fri 20 Nov, 2009 [14:16]
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