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Market Trend of Import of Ferroalloy as of 15 July 2015
= Both Mo and EMM prices continue declining =
The market trend of import of ferroalloy as of 15 July 2015 is as follows.

<> Silicon Metal = In the Chinese domestic market, the price of low-grade products as a whole is down by CNY200 - CNY400 per ton from the end of June. This is because, in addition to decreased production cost owing to commencement of application of an electricity rate for a full-water season in the main producing area, the consumption of silicon metal predominantly in the Aluminium industry is low. The market participants see this trend will continue at least by mid-August. For a reference, a 19% antidumping duty (AD duty) is levied on Chinese silicon metal (Si<99.99%) in Europe and now the sunset review is going on, but many of market participants think it is less likely AD duty will be abolished.

In Japan, the buying motivation is low due to ample in-hand stocks in the Aluminium industry, and therefore the trading of spot goods is thin. At the present moment, most of the shippers are moving centering around holding a long position for sales and purchase, and started a price negotiation for the shipment in the end of August and/or the delivery in September. However, some of the shippers are trying energetically to sell the products at reduced prices even though the trading is thin, and both offer and contract prices are down by US$10 - US$20 per ton.

<> Ferro-silicon = In China, the decrease in the supply volume due to prevalent shutdown by small and medium-sized producers and the weak demand in the steel mills and the magnesium metal industry are balanced, and the main price in the market continues to remain flat. The electricity rate for a full-water season as a factor for decreased cost in the Chinese ferroalloy production is applied predominantly in the southern region, and the benefit is low in 4 provinces in the northwestern region as a main producing area for ferro-silicon. However, ferro-silicon which is exported via Vietnam is increasing recently in Japan.

As to the regularly-exported products meant for Japan, Chinese producers still wish to offer the price at around US$1,400 per ton, but the reactions from the trading firms and steel mills in Japan are more severe than before. The domestic demand in the period from July to September is anticipated to be up from the prior period, but is down by 3% from the year-earlier period, which can not be considered as a favorable turn. Chinese producers are focusing on maintaining the price against the downward pressure on prices.

The price of products distributed in the market dropped owing to increased inflow volume of Chinese cheap products into the domestic market. The contract price is down by around US$20 from the end of June.

On the one hand, both contract and offer prices for Russian products remained unchanged from the end of June.

<> Silico Manganese = The imposition of antidumping duty (AD duty) on Indian silico manganese becomes almost sure, and it becomes more realistic in the market this will be implemented from mid-September. Indian producers are adopting countermeasures such as the enlargement of market in Brazil and conversion of products to 6014 product meant for domestic consumption, but it can't be avoided that the volume shipped to the Asian markets will increase.

In Japan, the trading of spot goods is thin because (1) The demand for steel mills is low, (2) There is an anticipation of a price fall in the market and (3) The long-term contract for the period from July to September just started.

However, some of the shippers are trying to sell with a price discount, and the contract price is down by around US$10 per ton from the end of June.

The price in China is down by CNY50 per ton from the end of June due to the reduced price of domestic manganese ore and the application of an electricity rate for a full-water season. CIF price meant for Japan among export prices dropped to US$1,300, but no export contract for Japan seems to be made.

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last modified : Wed 22 Jul, 2015 [09:38]
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