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|Market Trend of Import of Ferroalloy as of 12 August 2015|
|= Trading is thin as a whole and wait-and-see attitude is taken. Price of manganese metal stops declining =|
The market trend of import of ferroalloy as of 12 August 2015 is as follows.|
<> Silicon Metal = In the Chinese domestic market, the price of low-grade products as a whole continues to decline, and the price of products meant for domestic consumption is down by around CNY100 per ton from the end of July. The price for export was down by US$40 - US$80 due to such things happened together as the price cut in late July appeared with a time lag and Chinese yuan became weak against US dollar. The regulation on operation of plants in Hebei is anticipated to be imposed prior to September 3 as Victory over Japan Day, and the anticipation of a price fall is forecast to become strong due to oversensing of excessive inventory in the market.
In Japan, the trading for deliveries during August to September continues to be thin. Owing to the anticipation of a price fall and low customers' buying motivation, the price cut in no small measure is required for the sales, and the price is down by US$50 - US$60 from the end of July.
<> Ferro-silicon = In China, the decrease in the supply volume has been accelerated further by prevalent shutdown by small and medium-sized producers, and balanced out low consumption in the steel mills and the magnesium metal industry. However, as some producers are in a hurry to convert the products into cash, the main price meant for domestic consumption is down by CNY50 from the end of July. There is a rumor that the poor-quality, cheap products meant for export are being distributed, and the shippers that prefer cheap products have a feeling of anxiety. Besides, the consumption of ferro-silicon is predicted to be down prior to September 3 as Victory over Japan Day, and there is also an anticipation of a price fall in the market.
As to the regularly-exported products meant for Japan, Chinese producers are still dismissive of the price cut, but recognize the anticipation of a price fall as aforementioned. The trading in early August was basically thin with no price change, and both offer and contract prices remained unchanged from the end of July.
As to the products distributed in the market, the inflow volume of Chinese cheap products into the domestic market decreased, for which the steel mills showed reluctance to accept price hike, and the only lower price rose.
On the one hand, both contract and offer prices for Russian products remained unchanged from the end of July.
<> Silico Manganese = In India, as the antidumping duty is anticipated to be imposed in Europe after about one month, the shipment to Europe has been almost stopped. Owing to this, the producers' reactions are different like (1) Stopping production, (2) Shifting production to 6014 products and (3) Switching the sales route to the one to Asia, and the market prices in both India and Asia continued to drop. Besides, some of the market participants analyze that this price drop is due to decreased production of crude steel which resulted in decreased consumption of silico manganese in Taiwan and South Korea arising from the increased export of Chinese steel billets. For that reason, it seems to take time the price will stop declining.
In Japan, the demand for steel mills is still low, and the trading of spot goods continues to be thin because of an anticipation of a price fall in the market. Under such a situation, the contract price was down by around US$10 from the end of July.
The price in China had a downward pressure due to price reduction in Indian silico manganese in addition to low consumption by domestic steel mills. The price was down by CNY100 - CNY250 per ton from the end of July, and CIF price meant for Japan among export prices dropped by US$20 ditto, but no export contract for Japan seems to have been made.
<> High-carbon ferro-chrome (including charge chrome) = The price negotiation for the period from July to September between Japanese stainless steel mills and high-carbon ferro-chrome producers came to an agreement with the price being unchanged from the prior period. The cumulative total of high-carbon ferro-chrome Japan imported in the period from January to June was 346,000 tons, of which the import from Kazakhstan accounted for 48% of the total, the one from South Africa 40% and the one from India 6%. Because of this time's price fixing is a result of talks among several producers.
As to spot goods, the situation of no trading of spot goods having been clinched in Japan is ongoing.
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|last modified : Thu 20 Aug, 2015 [10:27]|