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Japan Ferroalloy Import Market Report - End-March, 2013
= Prices of Chinese silicon metal and manganese metal are declining =
The market situation in Japan of ferroalloy imports at the end of March is as follows.

<> Summary: Prices of Chinese silicon metal and manganese metal have been in decline, reflecting the low prices of both metals in China basically due to oversupply.

<> Silicon Metal: The price of Chinese ferrosilicon for aluminum secondary ingot production fell to the lowest in the past 3 years. Weather for the year of 2013 is forecast that there will be sufficient rainfall for power generation, bringing in lower power prices throughout the year. Market sources view, therefore, that the price for silicon metal will be also lower as the production costs will be lowered.

<> Ferrosilicon: Production of ferrosilicon in February was higher than expected, as some producers continued production during the Holidays, causing drops in the alloy's price in China. The prices of the Chinese ferrosilicon imported to Japan have been also declining due to the weak price trend and the continued inflow of the low-priced ferrosilicon through Vietnam. For reference, the price of the alloy imported through official routes are US$1,400 - 1,410/mt FOB, equivalent to about US$1,435 - 1,440/mt CIF Japan, while the prices of the detoured imports through Vietnam are more or less US$1,300/mt.

The price for Russian material has also dropped reflecting the declining price trend of the Chinese alloy.

<> Silicomanganese: The prices of Indian alloy in actual deals are lower by US$10/mt for those of mid-March. This drop in price may be only temporary, as the manganese ore prices for China recently rose twice, those for the shipments in April and those for the shipments in May.

The offered price for Chinese material fell also reflecting the price decline in China of the alloy without actual deals.

<> Charge Chrome: South African charge chrome producers and European stainless mills reached agreement on the benchmark price for the Q2 of 2013 at US$1.27/lb Cr on March 26, but negotiations are going on between the South Africans and the Japanese mills. No spot deal in Japan has been reported.

<> Low-carbon Ferrochrome (C<0.1%): The price applicable to the Q2 (April - June) shipments was agreed on March 28 at US$1.95/lb Cr between the overseas suppliers and Japanese consumers. Spot prices in actual deals were down due to sufficient supplies unlike the high-carbon ferrochrome and charge chrome.

<> Molybdenum: The price dipped to below US$11/lb at US$10.70 - 10.80/lb for molybdenum oxide in thin trades, about US$1/lb compared to US$11.50 - 11.80/lb of early January. The price for ferromolybdenum has become also lower at US$26.50 - 26.80/kg. It seems necessary for major producers to seriously think of adjustment of supplies.
last modified : Fri 05 Apr, 2013 [16:53]
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