|The TEX Report Topics < Ferro Alloys >|
|HOME >> Topics List >> January, 2011 >> 17 (Mon)|
|Market Tendency On Imports Of Ferro-Alloys At 14th January 2011|
|= To Check Risky Factors Relating To Prices Of Ferro-Alloys In New Year|
The market tendency by item on imports of ferro-alloys into Japan at the 14th January of 2011 is as follows ;|
<> General view = The risky factors in relation to prices of ferro-alloys in new year of 2011 are looked over herein. This view has been made on a macro base but even ferro-alloys, which has been considered as a niche industry for steel production, have closely connected with the international economy and the risky factors for ferro-alloy are thought to bring properly the sequence of cause and effect into this industry. In relation to the regulations for exhaust of carbon dioxide enforced from September of 2010 by the Central Government of China, the supply of electric power in China was suddenly controlled and this measure was that, in order to authorize internationally the countermeasures for environmental pollution, Chinese Government adopted this policy, but a panic in production of Chinese ferro-silicon emerged accordingly at that time. The risky factors are pointed out by the followings ; (1) A shortage of electric power has still continued in China and South Africa., (2) Owing to a sharp rise of prices for such raw materials as coal and iron ore for steel production, prices of steel products have risen (backed by a boom of construction business)., (3) Relating to a steep rise of copper price caused by a tightness of the supply, prices of commodities traded at LME have risen too., (4) The composition of exchange rates in such currencies as Chinese Yuan and EU's Euro has to be reorganized internationally., and so on.
<> Ferro-silicon = Reflecting the loosened regulations for supply of electric power from the beginning of new year - 2011, the plants, located in the so-called Silicon Land of China (Ningxia Hui Aut. Region, Inner Mongolia Aut. Region, and so on) have revived to produce ferro-silicon and its operations have been improved to a level of 70% of the designed capacities. However, in order to supplement a shortage of electric power in Huanan district arisen from a heavy snowfall and an extremely cold climate, the restricted supply of electric power is being implemented again. Because of the sales of ferro-silicon for realization performed by the stockiests concerned during the end of last year, price of Chinese ferro-silicon once fell considerably but the price for export has been currently stabilized at US$1,500 per metric ton CIF Japan. Also, domestic price of ferro-silicon in China has stayed at CNY7,050 per ton. Prior to Lunar New Year in China to start from the 2nd of February, Chinese steel companies are in the market to purchase ferro-silicon but producers' side has emphasized a tightness of actual cargoes.
<> Silico-manganese = Many producers of silico-manganese have existed in Huanan district of China, comprising of Jiangxi Province, Hunan Province, Chongqing Municipality, Sichuan Province and Guizhou Province, have been damaged by a heavy snowfall and an extremely cold climate in the beginning of new year, and procurements of raw materials and deliveries of products have been seriously troubled. Although the same problems happened in a similar period of last year, these problems are supposed to have been normalized in the same time of every year. The prices of silico-manganese purchased by major steel companies of China for January shipment are in the range of CNY8,100 - 8,200 per ton, having remained unchanged, but it is marked how does this price level move hereafter. However, the price of manganese ore as raw material for shipment to China in February of this year has been rolled over from that for January and the total quantity of manganese ore stored at wharves of discharging ports in China has at last reached a level of 3,400,000 - 3,500,000 tons. Accordingly, an excess of manganese ore stocked in China has been felt with a more strength and it is difficult to push up price of silico-manganese by reason of price for manganese ore. However, because of the drastic sales for realization during the end of last year, price of Indian silico-manganese had once fallen to a level of US$1,300 - 1,320 per metric ton CIF Japan but has now turned to a rise of US$50 per ton in the beginning of new year. A further improvement of price for silico-manganese is supposed to progress. This aspect is due to the fact that domestic price of silico-manganese in India has risen too for a favorable tone on the sales.
<> Charge chrome = Eskom of South Africa declared a crisis of electricity, a peak of which is anticipated to come up in March of 2011, and it is marked how does this declaration extend to production of ferro-chrome. A crisis of electricity in South Africa arose in the same period of 2008 and, in that time, price of ferro-chrome had soared but it is not known yet what happens in this year. Since stainless steel companies of Europe implemented to reduce their stocks of ferro-chrome in October - December quarter of 2010, a feeling of the oversupply has been multiplied and, from this point of view, it is questioned whether an anxiety for a reduction in production of ferro-chrome to be caused again by a crisis of electricity in South Africa will affect price of ferro-chrome or not. It is interested in seeing how do stainless steel companies in Europe and China react to this situation. The price of high carbon ferro-chrome (charge chrome) in China has been improved somewhat since the beginning of new year but is still unable to have a substantial surge.
<> Manganese metal = The triangle zone, including Hunan Province, where is a main base to produce electrolytic manganese metal in China, has been attacked by a heavy snowfall and, consequently, troubled in the production. Therefore, the shippers concerned have turned to rise price of electrolytic manganese metal. In comparison with ferro-silicon and silico-manganese, which have suffered from the same problem, price of Chinese electrolytic manganese metal has reacted rapidly to this situation. These shippers are now offering electrolytic manganese metal at US$3,700 per metric ton CIF Japan by a rise from that in a previous time.
<> Silicon metal = Although the production of silicon metal in Huanan district of China has been troubled by a heavy snowfall, the plants, located in Fujian Province, Yunnan Province, and so on, have been producing silicon metal in order and, therefore, the supply situation of silicon metal in China has been stabilized without a remarkable change. The price of Chinese silicon metal with 5.5.3 grade for export has stayed at US$2,500 - 2,520 per metric ton CIF Japan as remained unchanged. The quantities of Chinese silicon metal sold to aluminum alloy plants of Japan have recovered considerably since autumn of 2010.
<> Molybdenum = Owing to the cut of electricity supply and the bad weather attacked China, the output of molybdenum in China for October - December quarter of 2010 is supposed to have been reduced. Also, the quantities of molybdenum exported and imported by China in 2010 had been balanced but, in expectation of that China will import a larger quantity of molybdenum than that to be exported from China, the international prices of molybdenum products in new year have moved with a rise. Dealers are now offering molybdenum oxide on a price level of US$17.00 per lb. of Mo CIF Japan, having risen by US$1.00 per lb. of Mo compared to that prevailed at the end of last year. For a reference, domestic price of ferro-molybdenum in China is CNY143,000 per ton of material for product containing 60% of Mo, which has remained as unchanged from that at the end of last year.
|last modified : Thu 20 Jan, 2011 [10:42]|