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Market Trend of Import of Ferroalloy as of 15 June 2015
= There is tight feeling on spot goods of FeSi and EMM, and price of Mo drops =
The market trend of import of ferroalloy as of 15 June 2015 is as follows.

<> Silicon Metal = In the Chinese domestic market, the price of low-grade products almost stopped declining, but the price of high-grade products is still continuing to drop. When compared with the end of May, the price of 3303 is down by CNY200 per ton and the price of 2202 grade down by CNY300 per ton. The price of 5.5.3 grade meant for aluminium remains flat as mentioned above, which is due to the producers' wait-and-see attitudes. Against the anticipation of a price fall in the market arising from the facts there are areas where the cheap electricity rate for a full-water season will be applied from July and the new plants will be set up in Xinjiang Uygur, the producers take a careful stances and show no movement to sell at a cheap price.

In Japan, such several factors are relating to each other as the major producers in the aluminium industry as a main consumer have already procured a lot of in-hand stocks, the production curtailment in summer and the demand for auto parts, and the situation of thin trading without price movement is ongoing.

<> Ferro-silicon = In China, the market stock continues to decrease, and it becomes difficult to procure the product with Si being 75%. As the producers raise the offer price, the price meant for domestic consumption rises, which leads to the increased prices of all of regularly-exported products, the products distributed in the market and roundabout products in the aftermath. Among them, the price of roundabout products seems to rise more than others due to the decreased quantity which crosses the border with China.

Chinese producers wish to submit an offer price at around US$1,400 per ton for the irregularly exported products meant for Japan, but the trading firms' resistance to a price hike is strong. This is because they are thinking that as the domestic demand will be slightly weak in the period from July to September and the price of Indian silico manganese is still cheap, the steel mills will drive down the purchase price. The contract price of the spot goods is up by US$ 5 - US$25 per ton from the end of May.

The contract price of the products distributed in the market was up by US$10 - USR$20 per ton. As aforementioned, the price of roundabout products rose, which decreases the cheap products and pushes up the price. The contract price is up by US$10 - US$20 from the end of May.

On the one hand, the contract prices for Russian products dropped by around US$10 per ton owing to the adjustment of high prices.

<> Silico Manganese = In India, as it was rumored that European Commission would implement to impose the antidumping duty on Indian silico manganese on September 15, some of the producers switched products to 6014 product for domestic consumption from 6517 product for export. For that reason, the spot goods for export ran short, and the producers raised the offer price by around US$20.

On the One hand, in Japan, the major electric furnace mills are floating a tender for the regular price in the period from July to September, and as other steel mills are on alert against purchasing at a high price, the trading of spot goods becomes thin, among which the contract price is up by US$5 - US$20 from the end of May.

The price in the Chinese domestic market was down by around CNY50 per ton from the end of May. CIF Japan price for export is still high at US$1,300s, and no contract seems to be made for the export to Japan.

<> Charge Chrome = The price negotiation on the benchmark price of charge chrome for the next period (July - September) meant for Japan will start this week (the 3rd week of June) and is anticipated to move into high gear next week. It has been also voiced in the market that the negotiation meant for Europe has already started. Stainless steel mills in Europe and Japan will reduce consumption of ferro-chrome in the period from July to September so as to carry out production cut in summer, but such factors make the bargaining power for price cut slightly weak as (1) The price of high-carbon ferro-chrome meant for China which has ever been taken as a factor for price cut now remains flat, (2) In South Africa, the production cost will go up in the winter time during June to August (Southern Hemisphere) due to a relatively high electricity rate and (3) The production policy of the producers in South Africa is unclear.

As to spot goods, the situation of no trading of spot goods having been clinched is ongoing.

<> Low-carbon Ferro-chrome = In the Japanese domestic market, the demand is weak before the production cut in summer starts in the period from July to August, and the contract price of spot goods dropped by US Cents 2 - 3 per lb. The negotiation on the regular price in the period from July to September is anticipated to start in late June.

<> Molybdenum = Thompson Creek Metals Company Inc., USA has continued production stoppage, but the world's demand and supply balance has still leaned to a state of excess supply. As the stainless steel mills in Europe and Japan will start production cut in the period from July to August and the demand will drop further, LME molybdenum price dropped to US$16,000 per ton. In the European market, the price of spot goods also dropped to the same level.

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last modified : Fri 19 Jun, 2015 [09:39]
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