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|Japan Moves To Purchase Chinese Silico-Manganese After Interval Of One Year|
|= Price Offered From India Has Risen Steeply, Reaching To A Similar Level To That For Chinese Product|
Owing to a large differential of prices between Indian silico-manganese and Chinese product, the trading companies concerned were unable to purchase Chinese silico-manganese for the last one year and had held back this import. However, this fetter has been released from last week and the positive purchases of Chinese silico-manganese by Japanese trading companies are becoming remarkable.|
Indian silico-manganese has taken a bullish attitude for sales and new prices offered from India have risen to US$1,590 - 1,600 per ton CIF Japan, having approached to a similar level to that for Chinese product. The price of silico-manganese offered from China is US$1,600 per ton CIF Japan (part of offers is a higher price of US$1,650 CIF) and the contracts on imports of silico-manganese into Japan have been concluded at US$1,580 - 1,590 per ton CIF since last week.
After an interval of one year since March - April of 2009, Japanese trading companies have moved to purchase positively Chinese silico-manganese. Chinese product has been handicapped by the export duty (20%) and, therefore, China has to offer silico-manganese at a high price but, during this period, Indian silico-manganese rushed to export for Japan at discounted prices because of a considerable decrease of the demand for silico-manganese in Europe, where is a main market for Indian product.
The market price of silico-manganese in March - April of 2009 was US$1,100 per ton for Chinese product against US$950 for Indian product and, accordingly, a differential of prices between Chinese product and Indian product was US$150 per ton. This differential of prices for both parties temporarily narrowed to US$50 - 100 per ton but was not equivalent to the same level for both products and this aspect continued up to March of 2010. Consequently, Japan imported 38,000 tons of Indian silico-manganese in 2009 (compared with 29,000 tons in 2008) and 54,000 tons of Chinese silico-manganese in 2009 (compared to 265,000 tons in 2008) respectively.
However, the situation has turned to change entirely from April of 2010. Reflecting a revival of the demand for silico-manganese in Europe, Indian producers and shippers have shifted to take a bullish attitude for sales of silico-manganese and changed to offer silico-manganese at the same prices as those offered from Chinese side. Indian silico-manganese was already sold out up to May 2010 shipment and said to be negotiable for June shipment.
In Japan, Daido Steel is scheduled to hold soon a tender to purchase silico-manganese for July delivery. In anticipation of higher prices for shipments in April - June quarter, electric furnace mills are moving to purchase silico-manganese for shipments in July - September quarter. Therefore, the trading companies concerned are required to conclude their contracts on imports of silico-manganese for shipments in June and afterwards. It is wondered whether China will play again the main role of importing silico-manganese into Japan or not. Under the present situation, Japan still intends to purchase silico-manganese by means of maintaining competition between Indian product and Chinese product but, in view of the overwhelming capacity to produce silico-manganese held by China, Japan is thought to incline to purchase silico-manganese mainly from China in order to secure a stable supply of this ferro-alloy, when the demand to import silico-manganese into Japan has been normalized.
In parallel with a change of the market situation for silico-manganese, the demand for ferro-alloys in Europe and the USA is also moving to revive and price of ferro-silicon has turned to rise. Russia had once taken a positive attitude for sales of ferro-silicon to Japan in 2009 but, since the demand for ferro-silicon in Europe has recovered, Russia has risen the price of ferro-silicon for export to Japan.
Russian ferro-silicon was offered in last week at US$1,550 per ton CIF Japan by a rise of US$50 per ton The current price of Chinese ferro-silicon is still on a level of US$1,400 per ton CIF Japan and, therefore, the contracts to import Chinese ferro-silicon into Japan are increasing. The price of Russian ferro-silicon prevailing in Europe at present is US$1,900 per ton CIF (including the antidumping duties of US$290 - 350 per ton) and the contracts to import Russian ferro-silicon into Europe are being concluded at this price. A revival of the demand for ferro-silicon in Europe has been suddenly brought in Russia as a favorable information.
Also, while Europe and the USA are main markets for Russian ferro-silicon, the demand for special grade ferro-silicon in these regions has been ignited. FerroAtlantica has been producing this special grade ferro-silicon in Venezuela but declared on the beginning of April "Force Majeure" for deliveries of this ferro-alloy and this aspect is the reason, why price of special grade ferro-silicon, containing higher silicon, lower aluminum and lower calcium, is going to rise sharply. Russia has been exporting 8,000 tons per month of ferro-silicon for Europe and 7,000 tons per month of this ferro-alloy for the USA and, accordingly, a recovery of the demand for ferro-silicon in Europe and the USA is becoming a bullish factor for exports of Russian ferro-silicon.
|last modified : Fri 16 Apr, 2010 [09:55]|