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Indian SiMn Japan's Import Price Declines
= Unexpectedly lower price agreed with the EF mills for April - June quarter =
Prices of Indian silico-manganese for shipments to Japan declined to US$1,250 - 1,260/ton CIF, down by some US$50/ton compared to those of last week. This is mainly because the Indian sellers, hinted by the signs that buying interests in Japan were weakening, adjusted their selling attitude to meet the changes in the market.

In other words, the fact that the price, in Yen, agreed between the importers/distributors and the Japanese EF mills for delivery during April - June quarter did not rise so much as the distributors desired, to the level of over Yen130,000/ton delivered to the plant, discouraged the ambition of the Inidians to raise the prices even higher.

The prices of silico-manganese agreed in Japan were mostly in the range of Yen115,000 - 117,000/ton (or even at Yen120,000/ton) delivered to the plant. These numbers clearly indicate that the market no longer allow the Japanese buyers to continue buying at US$1,250 - 1,300/ton CIF, as the agreed domestic prices were almost equivalent to US$1,200/ton CIF or less upon import. For reference the prices of ferrosilicon agreed with the EF mills for the quarter were Yen125,000 - 128,000/ton delivered. Details of price changes are as per the tables attached hereto.

In the spot market, the prices for deliveries during April are reportedly more or less Yen120,000/ton for silico-manganese and Yen125,000/ton for ferrosilicon. The demand for spot silico-manganese is modestly firm.

Compared with January - March prices, the agreed April - June prices of silico-manganese were fairly up from Yen93,000 - 98,000/ton, by about Yen20,000/ton, because of the increase in costs, i.e. higher offered prices in US$ together with the weakened Yen/US$ exchange rate.

Ferrosilicon price in US$ did not change much but the weaker Yen/US$ rate increased the costs by at least Yen5,000/ton. However the currency factor does not seem to have been reflected to the April - June quarter price that was almost unchanged from that for the January - March quarter. There seem some hidden reasons for this. Especially something that explains reluctance of trading firms in aggressively selling ferrosilicon.
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last modified : Fri 30 Mar, 2012 [10:17]
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