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Market Tendency On Imports Of Ferro-Alloys At 26th February 2010
= Prices Of High Carbon FeCr In Europe And USA Have Suddenly Risen Steeply
The market tendency by item on imports of ferro-alloys into Japan at the 26th February of 2010 is as follows ;

<> General view = Since Lunar New Year in China was over, it is marked how do Chinese shippers move on prices of ferro-alloys. Chinese producers have a view that steel mills are supposed to take an attitude to watch carefully about further movements of prices for ferro-alloys from the beginning of March. Accordingly, current prices of Chinese ferro-alloys have still maintained the similar levels to those in an early part of February. On the other hand, as regards overseas markets, (1) owing to the active inquiries for silico-manganese from European countries, Indian producers have taken a bullish attitude for sales and price of Indian silico-manganese has risen, and (2) higher prices of ferro-silicon as offered from China have been rectified but a sudden and considerable fall of these risen prices are thought to be unlikely. As for ferro-silicon, in consequence of the moored ships continued from November of last year, the cargoes of Chinese ferro-silicon delivered to shipping ports for exports had to be packed in containers for stocking but the charges to handle these containers were necessary to pay, having resulted in an increase of the cost to import ferro-silicon. Therefore, in addition to this increase of the cost for containers, the strengthened exchange rate of Japanese Yen against US-Dollar has still continued on a firm tone and, consequently, Yen prices of ferro-silicon and silico-manganese for deliveries in April - June quarter will be inevitable to rise. Under the situation, the matter in question is now being focused on how extents do Yen prices of these two ferro-alloys rise.

<> Ferro-silicon = By taking into consideration of the tightened supply of ferro-silicon in Japan, prior to Lunar New Year in February, Chinese side offered ferro-silicon for Japan at high prices but, after this holiday season was over, price of Chinese ferro-silicon fell to a level of US$1,300 per metric ton CIF Japan by a reduction of US$50 per ton. Part of Chinese offers came down to US$1,280 CIF. The price of Chinese ferro-silicon offered for Japan, prior to Lunar New Year, was certainly US$50 per ton higher than that offered for South Korea but current price has been rectified. For a reference, the trading companies concerned have been presently suffering from an increase of the charges to handle containers, because the cargoes of Chinese ferro-silicon packed in containers are required to pay an additional charge for container packing. The consignees concerned usually pay Yen 2,500 per ton as discharging charges but, in case of the cargoes packed in containers, it has to pay Yen 5,000 per ton, causing to push up the cost.

<> Silico-manganese = Since Lunar New Year in China was over, domestic price of Chinese silico-manganese has remained without a change. However, the price of silico-manganese already offered from China for export to Japan is higher than that for domestic market and the current prices offered from Chinese side are not workable on the market in Japan as too high, because the latest price of silico-manganese offered from China is on a level of US$1,550 - 1,600 per metric ton CIF Japan. In addition to the fact that India has been endeavoring to increase their production of silico-manganese, many inquiries for silico-manganese from European countries have been placed before Indian producers and, therefore, Indian producers have to look after both markets of Europe and Japan. Nevertheless, at all events, India is unable to break away from the country, where imports manganese ore as raw material and converts it to manganese ferro-alloys on toll consignment base. Therefore, the risen price of manganese ore becomes a factor to increase the cost for production of manganese ferro-alloys. The current price of silico-manganese offered from Indian side is on a level of US$1,420 - 1,430 per metric ton CIF Japan, having shown a basic tone to rise further. Part of the prices offered from India is US$1,460 CIF.. Australian manganese ore with Mn 44% rose its price by US$1.00 per Mn 1% to US$7.50 per Mn 1% CIF for March shipment and India is supposed to be the first country, having agreed to this rise faster than China. Also, a big probability to rise again price of manganese ore as raw material to a level of US$8.00 per Mn 1% CIF for April shipment is anticipated to exist.

<> Charge chrome = It is wondered whether the matter to rise price of South African charge chrome for shipments in April - June quarter by 30 US-Cents per lb. of Cr is materialized as targeted by producers or not. It is marked to see an issue of the negotiations with stainless steel companies in Europe on price of charge chrome for the next quarter scheduled to be taken place in March. The production of stainless steel in Europe is on the way to recover but stainless steel mills have still kept a cautious attitude for new purchases of ferro-chrome. However, spot price of charge chrome in Europe is 125 US-Cents per lb. of Cr and that of high carbon ferro-chrome is 130 - 135 US-Cents per lb. of Cr respectively. On the basis of these spot prices, the negotiations to conclude contracts on imports of charge chrome (high carbon ferro-chrome) are being taken place at present. Spot price of charge chrome in the USA has risen and this rise of spot price has stimulated the market price of this ferro-alloy in Europe. In order to secure actual cargoes of charge chrome, some of stainless steel mills in Europe are in a hurry to purchase spot cargoes at higher prices than the benchmark price (101 US-Cents per lb. of Cr fixed for January - March quarter).

<> Low carbon ferro-chrome = The quantities of low carbon ferro-chrome stockpiled by DLA of the USA and broken down by carbon grades are uneven and many lots are carbon 0.13% max. material and carbon 0.1% max. material is informed to be nil. Therefore, in the US market which has been substantially influenced by sales from DLA, spot price of low carbon ferro-chrome with carbon 0.1% max. has risen to a level of 220 US-Cents per lb. of Cr. Following this high price in the USA, spot price of low carbon ferro-chrome with carbon 0.1% max. in Europe has also risen by more than 10 US-Cents to a level of 195 - 198 US-Cents per lb. of Cr.

<> Molybdenum = The trade of molybdenum oxide at LME in question was launched from the 22nd of February. The price quoted at LME is applied to future deliveries and it is marked how extent does LME price of molybdenum oxide for future deliveries influence on the price for cash on delivery. The parties concerned have inclined to foresee that LME price of molybdenum oxide has shown a signal to rise molybdenum prices for the future. The price of molybdenum oxide for cash quoted at LME on the end of last week was in the range of US$17.50 per lb. of Mo as a higher side and US$17.20 as a lower side, having risen by US$0.50 - 0.70 per lb. of Mo. For a reference, prices of molybdenum oxide quoted at LME on the 25th of February were US$17.23 - 18.14 per lb. of Mo for 3 months forward.

<> Manganese metal = Lunar New Year in China was over but the consumers concerned have still taken a cautious attitude to watch carefully about further movements of price for electrolytic manganese metal in domestic market of China and are supposed to work on their purchases from the beginning of March. Therefore, domestic price of electrolytic manganese metal in China has remained on the level of 15,000 - 15,200 per metric ton ex. plant. The output of crude stainless steel in China in 2010 is forecasted to be 10 million tons but, apart from the actual demand for electrolytic manganese metal, Chinese producers have been racked with a headache of the sharply risen price for selenium (SeO2) as raw material. The current price of selenium has risen to CNY550 per kilogram for cash payment. The inquiries for electrolytic manganese metal to be exported from China have been placed by European countries and South Korea. Major producers in China are now offering electrolytic manganese metal at US$2,860 - 2,900 per metric ton FOB, having remained as unchanged from that quoted in advance of Lunar New Year. Some of Chinese producers sporadically offered this metal at US$2,700 - 2,750 per metric ton FOB for export to Japan.

<> Silicon metal = The present time is a drought season to reduce production of silicon metal and, therefore, Chinese producers have taken a cautious attitude for sales of silicon metal to be delivered from their stocks. A general tendency of price for Chinese silicon metal has still stayed at the similar level to that before Lunar New Year and the latest price of Chinese silicon metal with 5.5.3 grade is on a level of US$2,250 per metric ton CIF Japan with an allowance of up and down of US$20 per ton.
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last modified : Thu 04 Mar, 2010 [11:04]
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