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|China Is Supposed To Have Made Round Of Domestic Sales Of Ferro-Alloys For Realization|
|= Heavy Snowfall In Huanan District Caused Confusion Of Transportation, Price Of Ele-Mn-Met Has Risen|
The risen prices of ferro-alloys in domestic market of China turned to weaken on a basic tone from the middle of November of 2010 but, in view of a change of the monetary situation which Chinese enterprises managed necessary funds to tide over the year-end, the parties concerned are moving to feel that the current prices of Chinese ferro-alloys in domestic market will soon bottom out. Domestic price of silico-manganese is hesitating to fall further and, under the situation which actual cargoes of Chinese ferro-silicon are tightening, domestic sales of ferro-silicon for realization are going to cease. Therefore, in anticipation of a further fall of price for ferro-silicon, Chinese suppliers had once taken a bearish attitude for sales of ferro-silicon but the circumstances surrounding domestic prices of Chinese ferro-alloys are changing.|
Domestic prices (per metric ton of material delivered to plants) of Chinese ferro-alloys as of the 10th January of 2011 are <> ferro-silicon : at CNY7,050, <> silico-manganese : at CNY8,000, <> high carbon ferro-manganese : at CNY7,700 and <> high carbon ferro-chrome : at CNY9,000.
This domestic price of Chinese ferro-silicon is still lower than that prevailed in last week but an extent of the fall shrunk to CNY50 per ton. Owing to the drastic sales of ferro-silicon for realization by speculators, domestic price of Chinese ferro-silicon in December of 2010 had fallen considerably but it was also informed that actual cargoes of ferro-silicon in China are becoming scarce. Reflecting the cut of electricity supply enforced in October too December of 2010, the production of ferro-silicon in Ningxia Hui Aut. Region had been seriously hampered and, according to an information, Ningxia Hui Aut. Region is supposed to have a possibility to be cut again electricity supply from new year. In relation to the fact that, because of the hindered transportation of coal emerged from a heavy snowfall, the volumes of electric power to be generated in Ningxia Hui Aut. Region are not enough for its requirements and necessary to relieve this shortage of electric power, it has been talked about that Ningxia Hui Aut. Region, where is the area to generate a substantial volume of electric power, may have a possibility to be requested to accommodate electricity for other districts.
Domestic price of silico-manganese in China has ceased to fall further and stayed at CNY8,000 per ton. At a tender held recently by a major steel company of China to purchase silico-manganese, the lowest price bidden was CNY8,200 per ton by a rise of CNY50 per ton. On the other hand, the price of Chinese silico-manganese offered for export has fallen to a level of US$1,500 per metric ton FOB but the price of Indian silico-manganese for export has continued to keep a low level of US$1,300 per metric ton CIF Japan. Accordingly, the price of Chinese product is still unable to compete with that of Indian product.
Domestic price of high carbon ferro-chrome in China has been improved from the beginning of new year. At a tender held recently by a leading steel company of Chine to purchase high carbon ferro-chrome, the lowest price bidden was CNY9,000 per metric ton of material by a slight rise. Reflecting an aftereffect of the fallen price for high carbon ferro-chrome prevailed in China, the benchmark price of South African charge chrome for shipments to Europe in January - March quarter of 2011 has been settled by a reduction of 5 US-Cents per lb. of Cr and, from this point of view, the suppliers concerned with Chinese high carbon ferro-chrome are requested to take an attitude to improve domestic price of this ferro-alloy in the course of 2011.
For a reference, by taking into consideration of the damage from a heavy snowfall, the price of Chinese electrolytic manganese metal offered for export in the beginning of 2011 has risen to a level of US$3,600 - 3,700 per metric ton FOB by an increase of US$200 - 250 per ton from that at the end of 2010.
|last modified : Wed 19 Jan, 2011 [10:22]|