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|Market Trend of Import of Ferroalloy as of 28 February 2014|
|=In China, price of FeSi continues to decline and price of Mn metal shows upward trend=|
Market trend of import of ferroalloy as of 28 February 2014 is as follows.|
<> Silicon Metal = In China, both production and shipment recovered after Chinese New Year Holidays were over, and the market price has continued to decline due to excess supply. Some producers in China lowered offer prices meant for Japan compared with mid-February, but some producers maintained the price unchanged, and the range between highest an lowest prices became bigger. Consequently, the contract price in the Japanese domestic market also made a range between highest and lowest prices bigger.
<> Ferro-silicon = In the Chinese market, the price has continued to decline due to the atmosphere of excess supply being strong. The factors in the side of producers are (1) Production increase stemming from resumption of production after Chinese New Year Holidays, (2) There were producers which operated a plant even during Chinese New Year Holidays, (3) Front-loaded production made by rumors of operational restriction from April. On the other hand, in the side of customers, the operational restriction by steel mills predominantly in Hebei has been implemented and the consumption of ferro-silicon has been slowing down. The continuous decline in the domestic market has affected the export price as well, and the price dropped by US$20 - US$30 per ton FOB from the middle of the month.
In the Japanese domestic market, the distributed amount of cheap products of Chinese origin via the third country is being recovered by the resumption of distribution as Tet Holidays in Vietnam was over. In the calendar year 2013, it comprised nearly 25% of the total import of ferro-silicon, and although the share is expected to increase further in 2014, the distributed amount of the products with Si being less than 75% seems to increase.
Russian products resist a downward pressure on the price, and the offer as well as contract prices have continued to remain unchanged from mid-February. The provisional decision by the U.S. Department of Commerce is scheduled to be made on the antidumping duty in March, and although the expectation has been voiced that there will a price reduction in the European and Asian markets arising from the shipment to USA slowing down, the sellers seem to have no such intention
<> Silico Manganese = In the U.S., the price continued to rise due to temporary tight supply for spot goods attributed to heavy snow, and neared a level of US$1,300 per ton. In Europe, the price has gone up because of the decrease in supply due to the political unrest in Ukraine in addition to heavy snow. Indian producers have still insisted a high price, and both offer and contract prices meant for Japan have risen by around US$10 from mid-February.
In the Chinese domestic market, the price has ceased to go down and remained unchanged from mid-February. For the reasons that the electricity rate is relatively high due to the winter season and BHP Billiton's price of manganese ore meant for China has continued to be flat, the resistance to the downward pressure is strong. The situation of almost no deal being clinched meant for Japan is ongoing.
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|last modified : Thu 06 Mar, 2014 [13:19]|