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Market Trend on Import of Ferroalloy as of June 28, 2013
=Price of Mo makes all-time low record for the first time in 3.5 years and silicon metal continues to drop=
Current market trend on import of ferroalloy as of June 28, 2013 is as follows.

<> Silicon Metal = Since the month of June in China, the cheap rate of electricity for high-water season has been applied to the whole area of Yunnan and some part of Guizhou, Hunan and Guangxi Zhuang. Therefore, it is said 80% of producers of silicon metal are in operation in the southern district including these areas. On the contrary, the increase in supply has pushed down both offer prices and contract prices as downward pressure on the market. This week, the offer price of 5.5.3 grade meant for Japan dropped to US$1,830 - US$1,850 per ton CIF Japan. This is cheaper by US$50 from the beginning of the month.

<> Ferro-silicon = More than one month has passed since the movement to crack down on shipment via Vietnam (= roundabout products via Vietnam) started in China. Although roundabout products via Vietnam in the Japanese market seem to be less than a period of time, the products are still remaining and the information on cheap prices has wings when the customers purchased. Albeit the domestic price in China has become more weakened than the middle of the month, the producers have a policy to maintain the offer price meant for Japan at US$1,400 per ton CIF. On the other hand, some trading firms in Japan offer a little bit cheaper price for Chinese products.

The prices of Russian products were somewhat firm and both offer prices and contract prices were only a little bit down from the middle of the month.

<> Silico Manganese = The demand for Indian products remained at a low level because the season for production curtailment started in Europe in addition to the price in Us dollar having continued to drop owing to ongoing Rupee depreciation, and the price meant for Japan dipped by US$40 per ton CIF from the middle of June.

As to Chinese products, many of producers continued to shut down operations, and as the feeling of tightness in the Chinese market began to prevail, the producer's offer price went up and the one meant for Japan also went up by US$10 per ton CIF. However, there has been no deal up until now.

<> Charge Chrome = The price negotiation on benchmark price has just started for the period from July to September, and the customers have strongly demanded a price cut. The negotiation is anticipated to be protracted, and some people in the market are forecasting it will be the middle of July to come to an agreement. There has been no deal on spot goods yet.

<> Low-carbon Ferro-chrome = The regular price for the period from July to September between Japanese stainless steel mills and overseas producers has been settled at US Cents 194 - 196 per lb. The price has been settled at the same price range for 3 consecutive quarters since the period from January to March. On the other hand, the price for spot goods remained at the same level as that for the middle of the month. The background for the above is as this was right after the regular price for the period from July to September was fixed, both customers and producers were negative in price change.

<> Molybdenum = The international market for molybdenum oxide continued to fall to a level of US$10.54 - US$10.65 per lb, which was below the cheap price level recorded in the end of October 2009. Of course, it is the year-to-date lowest price as well. Albeit the market showed reluctance to reduce a price in early June, the price has been pushed down by supply pressure due to the stagnating demand. This stagnating demand has stemmed from low production by stainless steel mills in Europe in the first half (January - June) and China having decreased consumer interests on imported molybdenum. For a reference, the market price level for ferro-molybdenum was US$26.00 - US$25.00 per kg which was a price cut connected to molybdenum oxide.

<> Manganese Metal = As the market in China became weakened, the offer price meant for Japan also showed a downward trend. The offer price dropped to US$2,200 per ton CIF Japan this week. As the contract price at US$ 2,180 ditto came up, some trading firms also say there is anticipation of a price fall.

(Remark) Table concerned is posted on The TEX Report dated July 1, 2013.

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last modified : Fri 05 Jul, 2013 [13:49]
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