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Market Trend of Import of Ferroalloy as of 28 November 2014
= Manganese metal price still drops, and Mo price marks new record low for the year =
The market trend of import of ferroalloy as of 28 November 2014 is as follows.

<> Silicon Metal = In China, the market for 553 grade as a low-grade product stopped declining. But, as compared with the end of October, the price is down by CNY200 - CNY300 per ton. This is because it's been forecast that the operational rate will go down and the supply quantity will be reduced due to the increase in the production cost arising from the fact that the comparatively high electricity rate for a low-water season will be applied in the main producing areas such as Sichuan and Yunnan from December. The ratio of electricity rate in the production cost for silicon metal is high, and it is said the hike at a rate of CNY0.1 per kwh will make the production cost raise by more than CNY1,000 per ton.

In Japan, the price negotiation started for the contract covering the period from January to March in 2015 from November 17, and will move into high gear during 1st to 5th of December. In anticipation of the car production in the period from January to March in 2015 being on a good note, the demand for aluminium is strong, and the price which temporarily dropped in the spot market made a recovery partly because of the anticipation of a price hike in the Chinese domestic market. Resultingly, the contract price remained unchanged from November 14. Since there was a shipper which raised its offer price by US$20 - US$40, there is a possibility that the price will go up slightly in both China and Japan in early December. However, the fluctuation in the foreign exchange is the biggest agita factor for customers and trading firms.

<> Ferro-silicon = The price of 75 % product in China was down by CNY300 per ton from the end of October, and the price of 72% product also dropped by CNY250. Albeit the situation of the supply being in excess has been improving owing to the recovered operating rate of steel mills and prevalent suspension of operation of small and midsize firms, the downward pressure is still strong in the market. The steel mills' asking price of 72% product for December purchase is cheaper than the market price, and the price of 75% product has been heavily affected by the fact that the metallic magnesium industry as a consumer lowered the asking price for the purchase for the reason of the lowered price of its products.

As to 75% product for export, both offer and contract prices meant for Japan are down by US$10 - US$20 from the end of October. This is in a reflection of the slump in the market in China, but the demand for ferro-silicon in the Japanese domestic market is on a strong note. But, this becomes one of factors for a price downward pressure because the merchandises other than regularly exported ones are increasing in the market.

The contract price of the products distributed in the Japanese domestic market dropped by US$40 from the end of October. This is because the market fluctuation in China was reflected in a short time and the inlet flow itself was increasing. However, many of cheap products have a problem in terms of the quality and size, and several customers suffered damage during November.

Russian products are mainly based on a long-term contract, and the trading in the spot market continues to be thin. Following the price drop of other sources, both offer and contract prices dropped by US$20 from the end of October.

<> Silico Manganese = In India, the demand from steel mills is weak, and the producers lowered its offer price for domestic consumption by US$10 per ton from the middle of November. The price for export also dropped by US$10, which represented a decrease of US$20 - US$25 versus the end of October.

On the other hand, the consumption in Japan is on a strong note, but the customers are keeping a distance from high-priced spot goods because the price negotiation for the period from January to March in 2015 will start. Besides, the thin trading is going on as both shippers and customers are on alert against the fluctuation in the foreign exchange. The price of products contracted for December shipment is US$1,035 - US$1,045 CIF Japan, down by US$20 from the end of October.

The price of silico manganese in China is down by CNY50 per ton from the end of October. This is because the supply in the northwestern region increases and some producers in the southern region lower the offer price. In Yunnan, there has been some producers which started to stop operation from the middle of November. The price drop range is smaller than other ferroalloys because the price of imported manganese ore as raw materials stopped declining, and the supply to the market is anticipated to decrease after the application of the electricity rate for a low-water season begins in Yunnan and Sichuan in December. The trading meant for Japan was thin on alert against the fluctuation in the foreign exchange market, and the contract price was US$1,450 US$1,475 per ton CIF Japan, down by US$20 from the end of October.

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last modified : Thu 04 Dec, 2014 [10:13]
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