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Market Trend of Import of Ferroalloy as of 13 December 2013
=No alteration takes place in China's export duty on ferroalloys scheduled to be enforced from 1 January 2014 =
Market trend of import of ferroalloys as of 13 December 2013 is as follows.

<> Silicon Metal = In the Japanese domestic market, although the customers took a wait-and-see attitude in the end of November and the price dropped temporarily, the aluminium makers moved to buy the portion for January - March and the price recovered overall as bouncing back. Among those, there is also anticipation of high prices for the items more than 4.4.1 grade (2202 and 3303 grades) whose supply has a tight feeling. On the other hand, the recovery in the price of 5.5.3 grade remained at a small range, and the offer price is mainly US$2,060 - US$2,100 per ton which also may have a small variation. In China, although the dumping to turn into money before the end of the year was expected, there is no low-price spot goods in the market and the producer's operational rate dropped due to the hike of electricity rate which in turn led to the increase in the tight feeling for supply. This impacted the Japanese market and created anticipation of high prices.

<> Ferro-silicon = China's Department of Finance made announcement effective December 11 that there will be no change in the export duty on ferroalloys for the next year. There is no cargo at main shipping ports in China for December shipment, and the shipment period possible for the contract is after late January. In China, while some traders are in a hurry to conclude a contract for the shipments till Chinese New Year (from January 31 to February 6 in 2014), some other traders have switched to the shipments from mid-February onward. At the moment, the tight feeling on spot cargoes in China has become waned off which weakened the increasing trend in the price, and the offer price for cargoes to be loaded at Tianjin (CIF Japan, CY-CY) submitted by China's biggest producer is kept at the same level as US$1,500 per ton (late January shipment). However, such case has come up as the reply was given to the inquiry to other producer that the price is more than US$1,550 and the shipment is after February 10. This is because the inquiry meant for the U.S. increased.

Meanwhile, Chinese products with a low price by way of the third country has increased more in the Japanese domestic market, and there was a bid price of nearly US$1,300 in the tender an electric furnace mill floated just recently.

The contract for Russian products has been also shifted to the shipments during January to February. As the price went up for cargoes to be shipped from Tianjin, the price of Russian products rose slightly and the contract with a low price has decreased.

<> Silico Manganese = The price in India dropped further around the end of November, but now recovered. Albeit Rupee becomes slightly strong against US Dollar, there hasn't been a big movement in the demand and supply position in the Japanese domestic market, and both offer and contract prices remained unchanged.

The price of Chinese products has continued to be flat in its domestic market. This is because, although December purchase price by the major steel mills rose slightly, the supply from domestic producers is enough which leads to no tight feeling being in the market and the demand for construction materials decreases in the winter season which leads to the stagnating consumption of silico manganese

<> Charge Chrome = As to spot goods, the situation without dealing is still going on. Although the price negotiation for the period from January to March of 2014 long-term contract started in the first week of December, it has not yet reached an agreement. The producers have strongly demanded price hike and desired to settle before Christmas, for which the customers have no big change in their demand compared to the period from October to December, and prepare for the long haul in order not to accept price hike. This time's negotiation is likely to reach an agreement in the end of December or continue over the year.

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last modified : Thu 19 Dec, 2013 [19:07]
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