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|Market Trend of Import of Ferroalloy as of 25 December 2014|
|= Price of Mn metal rebounds, and price of FeSi is put under strong downward pressure =|
The market trend of import of ferroalloy as of 25 December 2014 is as follows.|
<> Silicon Metal = In China, the market for both prices of high- and low-grade products fell in late this month. The price of 553 grade as a low-grade product was down by CNY300 - CNY400 per ton from the end of November. This is because of a strong anticipation of a price fall based on the current excessive market inventory and the future increased supply as well as the forecast that the oversupply situation will continue since several silicon metal production facilities will start operation in Sichuan and Yunnan early next year.
In Japan, both offer and contract prices are down by US$80 - US$110 per ton CIF Japan from the end of November, and the price below US$2,000 is sporadically seen in the tender.
<> Ferro-silicon = The market in China shows a continuous downward trend as the major steel mills asked a price cut for January purchase by CNY50 - CNY100 per ton from the prior month. As compared with the end of November, the price of 75% product meant for domestic consumption was down by CNY100 and the same of 72% product was down by CNY150. The price of regularly exported products meant for Japan varied according to the shippers, and dropped by US$10 - US$15 from the end of November. This is because while the major producers focused on maintaining the price, a part of the medium- and small-sized producers continued selling at a cheap price.
As to the products distributed in the Japanese domestic market, the contract price was down by US$20 from the end of November. As mentioned above, the major producers become hesitant in lowering the price, but the preference of shippers and users for cheap products has continued. However, currently 72% cheap product is being distributed as 75% product with fake documents for CIQ inspection, and several customers suffered damages.
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 are down by US$15 from the end of November.
<> Silico Manganese = In India, the cease of operation by silico manganese producers is expanding, and the adjustment on the cheap price started in the market as the supply was reduced. However, this was offset by the ongoing depreciation of Indian rupee against US dollar, and the price in US currency remains unchanged.
In China, the production curtailment is going on in the southern region, whereas the good production is going on in the northern region, but the market price stops dropping further while staying at a price, down by CNY200 per ton from the end of November. No contract was made meant for Japan in specific.
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|last modified : Wed 07 Jan, 2015 [10:22]|