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Market Tendency On Imports Of Ferro-Alloys At 15th February 2010
= Prices Of Low Carbon And High Carbon FeCr Have Risen To A Remarkable Extent
The market tendency by item on imports of ferro-alloys into Japan at the 15th February of 2010 is as follows ;

<> General view = The parties concerned in imports of ferro-alloys are interested in seeing how do Chinese suppliers of ferro-alloys take their attitude for its exports, after Lunar New Year holidays in China were over. In the case of last year - 2009, prices of Chinese ferro-alloys had been maintained on high levels in January but, after Lunar New Year was over, suddenly turned to fall. Accordingly, the matter in question is how does the case of 2010 move prices of ferro-alloys. In view of the fact that the price of manganese ore for March shipment has been settled with Chinese customers by a rise of US$1.00 (15%) per Mn 1%, there is a large probability in the market that Chinese producers will firmly maintain a bullish attitude toward sales prices of manganese ferro-alloys. On the other hand, a differential of prices between domestic sales and exports in China is more than US$150 per ton and, depending on an attitude for purchases of ferro-silicon to be taken by Japanese side, price of Chinese ferro-silicon has a possibility to be slow to settle. However, Yen prices of bulk ferro-alloys settled with electric furnace mills in Japan for March delivery are Yen 128,000 per metric ton delivered to mills for ferro-silicon and Yen 138,000 per metric ton delivered to mills for silico-manganese respectively. Therefore, by taking into consideration of these Yen prices settled for domestic sales in Japan, it is supposed to be difficult for Japan to allow a rise of the prices on US$ base to be offered from overseas countries from a viewpoint of its profitability for imports.

<> Ferro-silicon = A basic tone to rise price of ferro-silicon as seen from an early part of January is due to the action, which some of Japanese trading companies have moved to purchase ferro-silicon, and, when some purchases of ferro-silicon by Japan are sporadically seen after Lunar New Year in China was over, market price of ferro-silicon is anticipated to firm up. However, Japanese side has taken a cautious attitude for purchases of ferro-silicon from the beginning of February and, consequently, market price of ferro-silicon has turned to fall by US$50 per ton. A differential of prices between domestic sales and exports in China is more than US$150 per ton. A bullish attitude for sales of ferro-silicon taken by Chinese suppliers has caused to add a premium to their price for export but, depending on the demand for ferro-silicon in overseas countries, this premium has a possibility to shrink. Chinese suppliers are now offering ferro-silicon at US$1,250 - 1,270 per metric ton CIF for their customers in South Korea and Taiwan, and these offers are thought to have been based on the prices for domestic sales, disclosing their real motive. The prices of Chinese ferro-silicon offered for Japan are in the range of US$1,300 - 1,320 per metric ton CIF, having felt to be comparatively high.

<> Silico-manganese = Price of Indian silico-manganese has had a further rise and reached a level of US$1,400 per metric ton CIF Japan. Nevertheless, taking a chance on the bullish mood of domestic price for silico-manganese in China, Chinese silico-manganese is now being offered at US$1,600 per metric ton CIF Japan and, accordingly, a differential of prices between Indian product and Chinese product is US$200 per ton. Naturally, high price of Chinese silico-manganese is not workable and has become nominal. Domestic price of silico-manganese in China has already risen up to a level of CNY8,500 - 8,600 per ton, corresponding to US$1,265 per ton which is calculated to come to a level of US$1,500 per metric ton on FOB China base. Therefore, it will be certain that Chinese suppliers offer silico-manganese at higher prices for their customers in overseas countries, but electric furnace mills in Japan have still taken a cautious attitude for purchases of silico-manganese as the market has continued a depression.

<> Charge chrome = It is still too early to taken place the negotiations on price of South African charge chrome for shipments to Europe in April - June quarter but the parties concerned expressed that it will be inevitable to rise the price by 30 US-Cents per lb. of Cr. Price of South African charge chrome targeted to have a rise of 20 US-Cents on the end of January but has taken a more bullishness from the beginning of February. South African producers explained that main factors to be necessary to rise price of charge chrome are the risen prices of coke and electricity fee and the strengthened exchange rate of South African Rand against US-Dollar. China is one of major countries to import high carbon ferro-chrome (charge chrome) from the world sources but, in anticipation of that Turkey is unable to ship chrome ore for China in January - March quarter because of a heavy landsliding occurred in late January of 2010, the production of ferro-chrome in China is forecasted to be influenced to a substantial extent and spot price of high carbon ferro-chrome is rising. According to an opinion from some producers, the world supply of high carbon ferro-chrome (charge chrome) in 2010 will be short and some steel mills in Europe are in a hurry to purchase this ferro-alloy. Spot price of high carbon ferro-chrome in Europe has risen to a level of 100 - 110 US-Cents per lb. of Cr (on DDP base), having exceeded partially the benchmark price settled for shipments in January - March quarter.

<> Low carbon ferro-chrome = The sales of low carbon ferro-chrome by DLA of the USA, which have hampered the movements of market prices for a long period, are in the direction to cease soon and this matter has encouraged the existing producers. The survived producers have been located in Russia, Kazakhstan and Japan. Therefore, market prices of low carbon ferro-chrome are still rising gradually and current price of low carbon ferro-chrome in Europe is 190 US-Cents per lb. of Cr (on DDP base) for carbon 0.1% max. materia. At a tender held recently by one of steel companies in Japan to purchase low carbon ferro-chrome with carbon 0.1% max., the lowest price bidden was sporadically seen as a lower level than US$180 US-Cents per lb. of Cr but a general tendency of price for low carbon ferro-chrome is 180 - 185 US-Cents per lb. of Cr CIF Japan for carbon 0.1% max. material, having shown a basic tone to rise further and gradually prices of low carbon ferro-chrome.

<> Molybdenum = In prior to the listing price of molybdenum oxide on LME from the 22nd February of 2010, market price of molybdenum oxide has been still rising gradually. The price of molybdenum oxide as of the 12th of February has risen by US$1.00 to a level of US$15.00 - 15.40 per lb. of Mo in comparison with that at the beginning of February. Molybdenum prices have still maintained a feeling of tension and surged a mood to rise further. However, a change of the aspect has existed. Reflecting the regulations for funds to be enforced by the Government of the USA, funds itself are leaving from LME and it is marked to see whether price of molybdenum oxide will move to rise as a scenario or not.

<> Manganese metal = In expectation of that price of Chinese electrolytic manganese metal will develop on a bullish tone after Lunar New Year was over, Chinese producers are reluctant to sell their stocked cargoes of this metal and a general tendency of domestic price for electrolytic manganese metal offered by Chinese producers is on a level of CNY15,000 - 15,200 per ton. However, for reason of financing in prior to Lunar New Year, a discount of CNY100 - 200 per ton has been sporadically seen. In relation to Lunar New Year in China, the inquiries for Chinese electrolytic manganese metal from overseas countries are dull at present and, in addition, the substantial purchases of electrolytic manganese metal from China have been already committed in advance of Lunar New Year. The current price of Chinese electrolytic manganese metal offered for export is in the range of US$2,850 - 2,900 per metric ton FOB, having remained as unchanged from that at the beginning of February.
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last modified : Fri 19 Feb, 2010 [10:08]
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