The TEX Report Topics < Ferro Alloys > Home
HOME >> Topics List >> January, 2010 >> 21 (Thu)
Cooled Fever In China Causes To Fall Ratios Of FeNi Exports From Japan
= Fallen By 73% From That At Peak, Exports At Present Fell By 40%
The quantity of nickel in ferro-nickel exported from Japan to China in the first half of 2009 had a considerable increase but, reflecting a feeling of the oversupply in China, the exports of ferro-nickel from Japan to China in the second half were in the direction to decrease in both quarters of July - September and October - December.

The quantities of nickel in ferro-nickel exported from two shipping ports of Japan to four Asian countries of South Korea, China, Taiwan and India in January - November of 2009 were as per the tables (1), (2) and (3) attached hereto.

On the basis of the customs-statistics released by the Ministry of Finance of Japan, the shares of ferro-nickel exported from Japan in comparison with the domestic output of this ferro-alloy were <> January - March quarter : 54.8%, <> April - June quarter : 72.8%, <> July - September quarter : 44.2% and <> October - December quarter : 39.4%. The increased exports of ferro-nickel from Japan in the first half of 2009 were considerable and the total quantity of nickel in ferro-nickel exported from Japan in January - November of 2009 had shared 59.2% of the whole of domestic production. The shares of ferro-nickel exported from Japan in 2008 had moved on the level of 30%. (Note : The quantities of nickel in ferro-nickel exported from Japan in 2009 had been calculated on the basis of nickel content produced in each quarter.)

However, the aspect on exports of ferro-nickel from Japan in the second half of 2009 had changed largely. The first half of 2009 was a period to reduce considerably the production of stainless steel in Japan and the consumption of ferro-nickel in Japan for January - March quarter had a large decrease of 52% from that in the same quarter of 2008. Therefore, a sudden appearance of the demand to export ferro-nickel from Japan to mainly China became the existence to maintain the operation rate for production of ferro-nickel in Japan, although the prices for exports were not on the line to be profitable for producers in Japan. The matter to export ferro-nickel from Japan has had various merits, such as to maintain a scale of the production on a certain level, to avoid an increase of the stocks of ferro-nickel in Japan, and so on. Accordingly, the exports of ferro-nickel from Japan are favorable for producers.

This particular increase in exports of ferro-nickel from Japan to China had surged in the first half of 2009 but the exports for China in the second half had a sharp decline as mentioned above. The reasons are (1) the production of nickel-contained pig iron (including low grade ferro-nickel) in China has revived and the structure to supply nickel from domestic sources in China has been set up., (2) as an aftereffect of the excessive imports of nickel by China in the first half of 2009, a surplus of 140,000 tons of nickel stocked in China has come up to the surface and consumers have held back their purchases of nickel., and (3) major stainless steel companies in China implemented to reduce their production of stainless steel by 10- 15% in October - December quarter and, consequently, the exports of ferro-nickel from Japan to China are supposed to have entirely passed over its peak. The quantity of nickel in ferro-nickel exported from Japan to China in the two months of October and November had totaled to only 323 tons.

Nevertheless, Pacific Metals is a traditional shipper of ferro-nickel and has been exporting ferro-nickel to South Korea and Taiwan on a pace of 18,000 - 20,000 tons per annum on nickel content base and the particular demand for ferro-nickel from China in the first half of 2009 was an extraordinary case. In January - November of 2009, Japan exported 8,995 tons of nickel in ferro-nickel for South Korea and 7,714 tons of nickel in ferro-nickel for Taiwan respectively and, in view of a substantial reduction in production of stainless steel in Japan, the exports of ferro-nickel from Japan had become a stable transaction. For a reference, Japan exported 13,532 tons of nickel in ferro-nickel in January - November of 2009. In addition, Japan has to develop the market for ferro-nickel in India, where has had a strong intention to increase their production of stainless steel. Japan already exported 1,259 tons of nickel in ferro-nickel for India in January - November of 2009.

For a reference, according to the steel statistics released by the Ministry of Economy, Trade and Industry, when the quantities of ferro-nickel consumed in Japan on quarterly base for January - November of 2009 are compared with those for the same period of 2008, <> January - March quarter : decreased by 51.8%, <> April - June quarter : decreased by 11.7%, <> July - September quarter : decreased by 0.5% and <> October - November : increased by 24.1%. Therefore, the domestic consumption of ferro-nickel in Japan had increased from September in comparison with those in the same months of 2008.
last modified : Tue 26 Jan, 2010 [10:21]
Copyright (C) 2004 The TEX Report Ltd. All Rights Reserved.