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Market Tendency On Imports Of Ferro-Alloys At 30th September 2010
= Problem Of Ferro-Silicon In China Will Be Focused After The Nation Day
The market tendency by item on imports of ferro-alloys into Japan at the 30th September of 2010 is as follows ;

<> General view = A shortage of ferro-silicon as raw material at foundries in Japan was reported on the 29th of September by NHK TV and is now shifting to a national matter of concern. Although, in anticipation of a crisis for supply of rare earth as presumed to arise in the near future, major consumers have already held the stocks of rare metals to be durable for its consumption in about 6 month, the problem of ferro-silicon is a contrary case and small consumers have been suffering from the difficulties to secure actual cargoes of ferro-silicon. It is possible for steel companies to use silico-manganese as a substitution for ferro-silicon in the process of steel production but the foundry industry is unable to utilize other raw material than ferro-silicon and, therefore, a shortage of ferro-silicon is a very critical trouble for foundries. On the other hand, a series of the tension surrounding the problem of Chinese ferro-silicon has been still continuing. The reason is that, in spite of the fact, which China has been in many holidays under the names of the Mid-Autumn Festival (during the 22nd to 24th of September) and the Nation Day (during the 1st to 7th of October), steel companies are moving to purchase ferro-silicon.

<> Ferro-silicon = By means of utilizing the regulations for production of ferro-alloys, the first phase to rise price of ferro-silicon passed through and China has entered into a period of many holidays. Under this situation, Chinese ferro-silicon is currently being offered at US$1,850 - 1,900 per metric ton CIF Japan, having come to a standstill. The price of US$2,000 CIF offered recently to Japan is that for special grade ferro-silicon with lower contents of aluminum and calcium. The price of Chinese ferro-silicon for export basically follows that prevailing in domestic market of China and, accordingly, the movements of price for ferro-silicon in domestic market are marked. Even during a period of many holidays as mentioned above, the price of Chinese ferro-silicon is still on the way to rise gradually. The domestic prices of ferro-silicon prevailing in Tianjin and Shanghai markets have risen to a level of CNY8,200 - 8,500 per metric ton, which is CNY500 per ton higher than that at the end of last week.

<> Silico-manganese = A tempo to rise domestic price of silico-manganese in China has become speedy and the current price of Chinese silico-manganese in Tianjin and Shanghai markets has risen up to CNY9,300 per metric ton. In order to compensate a shortage of ferro-silicon, the consumption of silico-manganese in China is increasing. There is a view in China that suppliers will target to rise domestic price of silico-manganese to a level of CNY10,000 per ton, and the actions to sell silico-manganese are negative. As regards imports of manganese ores into China as raw material for production of silico-manganese, a shipper has recently concluded the contracts with Chinese customers on 200,000 tons in total for October shipment and, therefore, an opinion anticipates that prices of manganese ores will resume to rise in the near future. However, owing to the fact that Indian silico-manganese is being still offered at a low price of US$1,400 per metric ton CIF Japan, the price of Chinese silico-manganese for export has to be US$1,650 - 1,700 per metric ton FOB as calculated theoretically on the basis of its domestic price but the actual price to be workable on export has become nominal. When a higher price of silico-manganese prevailing in domestic market of China is compared with the actual one to be workable in overseas market, a differential between both prices is considerable.

<> Charge chrome = The benchmark price of South African charge chrome for shipments to Europe in October - December quarter of 2010 has been settled to remain as unchanged from that fixed for July - September quarter but Japanese consumers have been not satisfied with this settlement. In view of the fact that stainless steel produced in Japan has to compete with those produced in China, stainless steel companies of Japan have already asked South African producers to reduce the price of charge chrome for October - December quarter. The domestic price of high carbon ferro-chrome (charge chrome) in China has been on a basic tone to rise from August but its pace is slow and the highest one at present is CNY9,100 per metric ton of material (equivalent to 112 US-Cents per lb. of Cr for material on Cr 55% base). A differential between domestic price in China and benchmark price in Europe has come to be large. Reflecting the strengthened exchange rate of Japanese Yen against US-Dollar, a profitability to export stainless steel products from Japan has worsened and, from this point of view, stainless steel companies of Japan are not agreeable to this settlement of the price for October - December quarter as European mills have decided.

<> Low carbon ferro-chrome = The negotiations with regular consumers of Japan on price of low carbon ferro-chrome for shipments in October - December quarter had passed a peak and, consequently, a reduction of the price has been mutually agreed. New prices of low carbon ferro-chrome with carbon 0.1% max. are thought to be in the range of 190 - 193 per lb. of Cr CIF Japan with a higher price of 195 US-Cents CIF for some contracts and these new prices have been reduced by more than 10 US-Cents per lb. of Cr in comparison with those fixed for July - September quarter.

<> Manganese metal = The new regulations enforced by the Central Government of China are to restrain the volumes of electric power to be supplied to industries and to reduce the exhaust of carbon dioxide and have put a substantial influence on such main bases as Guangxi Zhuang Aut. Region and Guizhou Province, where have been producing electrolytic manganese metal. Consequently, the regulations have caused to promote a feeling of the tightened supply of actual cargoes. The price of Chinese electrolytic manganese metal offered for export has risen to US$3,350 per metric ton CIF Japan. On this phase of the price, China has entered into a period of many holidays under the names of the Mid- Autumn Festival and the Nation Day. Therefore, the parties concerned have to wait for negotiations until these holidays were over.

<> Silicon metal = In relation to the situation which Huanan district of China is a main base to produce silicon metal (by means of utilizing mainly hydroelectric power generated by water), the production of silicon metal in this district, excluding Guangxi Zhuang Aut. Region, has been not influenced by the regulations for exhaust of carbon dioxide. However, by taking into account of a sharp rise of price for ferro-silicon at present, the market has felt to see soon a rise of price for silicon metal and a reluctance for sales of silicon metal is arising in China. Therefore, the price of silicon metal with 5.5.3 grade for aluminum industry as offered from China has risen to a level of US$2,500 per metric ton CIF Japan, which has had a rise of more than US$100 per ton from that prevailed in the middle of September. Also, since the actual cargoes of Chinese silicon metal with 4.4.1 and 3.3.1 grades for chemical industry have become scarce, the cases to deliver silicon metal with 5.5.3 grade for aluminum industry as a substitution for chemical grade are arising and this phenomenon is accelerating to rise the price of Chinese silicon metal with 5.5.3 grade.

<> Molybdenum = Dealers are now offering molybdenum oxide at US$15.20 - 15.50 per lb. of Mo CIF Japan, having fallen by US$0.50 per lb. of Mo from that in the last case.

<> Ferro-vanadium = Dealers are currently offering ferro-vanadium at US$29.50 - 31.00 per kg. of V CIF Japan, having remained unchanged .
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last modified : Wed 06 Oct, 2010 [09:54]
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