|The TEX Report Topics < Ferro Alloys >|
|HOME >> Topics List >> February, 2010 >> 01 (Mon)|
|Market Tendency On Imports Of Ferro-Alloys At 29th January 2010|
|= Composition In Exports And Imports Of Ferro-Alloys By China Has Changed|
The market tendency by item on imports of ferro-alloys into Japan at the 29th January of 2010 is as follows ;|
<> General view = The total quantities (on material base) of ferro-alloys exported and imported by China in the calendar year (January - December) of 2009 were known. Namely, China exported 924,000 tons of ferro-alloys in 2009, having had a considerable decrease of 70% compared with that in the preceding year of 2008, and imported 2,566,000 tons of ferro-alloys in 2009, which had a remarkable increase of 94% compared to that in 2008. Accordingly, the imports exceeded substantially the exports as the first case for China. The composition in trade of ferro-alloys by China has had a large change. While the world economy in 2009 had been depressed seriously, in the course of the particular circumstances, only China expanded their production of crude steel in 2009 and, consequently, the consumption of ferro-alloys in domestic market of China had a substantial increase. China produced 22.09 million tons in total of ferro-alloys in the calendar year of 2009, having increased by 20% compared with that in preceding year of 2008, and this increase in domestic consumption of ferro-alloys resulted in a considerable change of the composition in exports and imports of Chinese ferro-alloys in 2009. China has broken away from the constitution to rely on exports. China is anticipated to import some kinds of ferro-alloys (such as ferro-chrome, ferro-molybdenum, and so on) with more quantities even in 2010 and these increases of the imports will exceed the exports. Silico-manganese is a traditional commodity to be exported from China but the imports of silico-manganese by China in 2009 had a remarkable increase of 4 times from that in 2008. For a reference, the companies, which produce ferro-silicon and silico-manganese in China but are not qualified by the Central Government of China as exporters, have been not allowed from January of 2010 to apply for export declaration. These companies in question have included those established in China as joint ventures between Japanese enterprises and Chinese ones and, therefore, it is marked how do these joint venture companies act for resolution of this problem.
<> Ferro-silicon = The price of ferro-silicon offered by Chinese producers for export was a high level but US$1,350 per metric ton FOB (ocean freight between China - Japan is estimated at US$30 per ton) as offered from China was not workable on the market in Japan and the current price has fallen to US$1,300 FOB. The levels of prices for Chinese ferro-silicon contracted with Japanese customers are various and a price is US$1,280 per metric ton CIF Japan, having fallen to a lower level than US$1,300 CIF, but a wall for higher prices has existed. As regards domestic price of Chinese ferro-silico, it is necessary to watch carefully about the movements, after Lunar New Year was over, but a difference of prices between that (US$920 per ton delivered to works) for domestic market and that for export has become substantial and it is marked to see how does this contradictory tide influence on price for export. For a reference, the Yen prices of ferro-silicon contracted with electric furnace mills in Japan for March shipment are in the range of Yen 126,000 - 128,000 per metric ton delivered to mills and, therefore, the situation to make up a wall for higher prices is understandable.
<> Silico-manganese = The price of manganese ore to be imported into China for March shipment has risen by 15%. In spite of a considerable rise of price for manganese ore, the sales of this ore are on a favorable tone and a major shipper has concluded the contracts with Chinese customers on more than 100,000 tons in total during the period of one week. It is said that China has stocked 2 million tons of manganese ores at present, including one million tons estimated to be a surplus, but China is supposed to be still positive to purchase manganese ores as raw material for production of manganese ferro-alloys. By taking a chance on this trend, having risen sharply prices of manganese ores, the price of Chinese silico-manganese for export has been rising continuously to a considerable extent and is now being offered at US$1,600 per metric ton FOB by a rise of US$200 per ton. Accordingly, Indian silico-manganese is being offered at US$1,450 per metric ton CIF Japan by a rise of US$50 - 100 per ton and the price of US$1,600 FOB for Chinese product has entirely become nominal but a chance to sell Indian silico-manganese at US$1,400 per metric ton CIF has still existed. For a reference, a major electric furnace mill in Kanto area held in last week a tender to purchase silico-manganese for March shipment and the lowest price bidden was on a level of Yen 130,000 per metric ton delivered to mill, having risen by more than Yen 10,000 per ton from that for February shipment.
<> Charge chrome = The matter in question at moment in relation to the benchmark price of South African charge chrome for shipments in April - June quarter is how extent does the price rise and an opinion to be risen by 20 - 25 US-Cents per lb. of Cr is influential at present. In view of the fact that a leading dealer has been working to purchase Indian high carbon ferro-chrome as much as possible, spot price of Indian product is now being offered at 98 US-Cents per lb. of Cr FOB, having exceeded the benchmark price of South African charge chrome settled for shipments in January - March quarter (101 US-Cents per lb. of Cr on DDP base in Europe). In addition to the case that South African producers have been restricting their pace to increase production of charge chrome, the landsliding occurred in Turkey has enforced to suspend the exports of Turkish chrome ore for 90 days at least and this accident has put a considerable impact on Chinese side. The exports of chrome ore from Turkey have been contracted mainly with Chinese customers and this problem is thought to accelerate the purchases of chrome ores by China.
<> Low carbon ferro-chrome = A mood to rise prices of ferro-chrome is prevailing in a whole of the market and, by means of riding on this phenomenon, the price of low carbon ferro-chrome with carbon 0.1% max. in Europe has risen to 185 US-Cents per lb. of Cr. Spot price of this ferro-alloy in Japan has also risen to a level of 180 - 185 US-Cents per lb. of Cr CIF by a rise of 5 - 10 US-Cents.
<> Silicon metal = The market of Chinese silicon metal with 5.5.3 grade is an off-season at present. The negotiations with aluminum alloy plants in Japan on imports of Chinese silicon metal for shipments in January - March quarter of 2010 had already finished by December of 2009. A basic tone to import silicon metal into Japan has been still bullish and, whenever the inquiries for silicon metal from Japan are placed, price of this metal will be certainly offered by a rise. The price of Chinese silicon metal contracted in December of last year was on a level of US$2,200 per metric ton CIF Japan but it is marked how extent does price of silicon metal rise, after Lunar New Year in China was over,
<> Manganese metal = The price of Chinese electrolytic manganese metal has come to a standstill on the level of 2,850 per metric ton FOB. It is market how does Chinese producers of this metal move on their prices, after Lunar New Year in China was over. For a reference, China exported 160,000 tons of electrolytic manganese metal in the calendar year (January - December) of 2009, having decreased to half of that (305,000 tons) in the preceding year of 2008. The exports of this metal from China to South Korea, Japan and Europe in 2009 had a considerable decline in all of them.
<> Molybdenum = The case to rise molybdenum prices has made a pause. The current price of molybdenum oxide is in the range of US$14.50 - 15.00 per lb. of Mo, having remained as unchanged from that in the middle of January for two weeks. Owing to the speculative purchases of molybdenum oxide by traders during December of 2009 to the beginning of January of 2010, spot price of molybdenum oxide has risen by 30% from that in December and, after that, the parties concerned are watching carefully about further movements from Chinese side. It is not clear yet how extent is China interested in further purchases of molybdenum and, from this point of view, price of molybdenum oxide has remained without a substantial change.
<> Ferro-vanadium = Market price of ferro-vanadium has risen successively for the last 2 weeks and reached US$29 per kg. of V CIF Japan, having approached the level of US$30. This price is the highest one since the end September of 2009.
|last modified : Thu 04 Feb, 2010 [10:37]|