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|Market Trend of Import of Ferroalloy as of 30 November 2015|
|= Prices of some products like manganese metal stop declining =|
The market trend of import of ferroalloy as of 30 November 2015 is as follows.|
<> Silicon Metal = The price of silicon metal has continued to decline gradually, but the price of 553 grade as a low-grade product seems to stop declining before being down to CNY9,000 per ton. Currently, the prevailing price meant for domestic consumption is CNY9,500 - CNY9,600, and the price for export as a trade in cash is further down to around CNY9,300 - CNY9,400, and it is predicted the price for domestic consumption will be down to this level sooner or later. On the other hand, there is a story in the market that the Yunnan Province will hurriedly cease the extension of application of a cheap electricity for a full-water season and apply an electricity rate for a normal season or a relatively high electricity rate for a low-water season from December, which is expected to increase production cost and become a brake on the price cut .
In Japan, the tenders for the purchase during January to March in 2016 by the major customers are about to get to the busiest part. The price cut from the prior period is predicted to be sure, which affects the spot market as a downward pressure on the price. Currently, the prevailing contract price is somewhere around US$1,500.
<> Ferro-silicon = In China, the shutdown by small and medium-sized producers has been prevailing furthermore, and the cut in supply has got more than the one in October. However, the consumption in China is also low, which leads to the demand and supply being balanced. Besides, the ferro-silicon producers which decided to shut down the plant stopped sales at a cheap price, and therefore there has been almost no movement in the spot price. The market participants see the change in the price will occur in the period from the turn of the year to Chinese New Year (7th to 13th of February 2016) more likely than in the period during December.
The demand in the Japanese domestic market is also weak, and the downward pressure on the price is strong. Several steel mills have begun to float a tender for the purchase during January to March in 2016, and the price is presumed to be reduced from the prior period, which has worked as a price downward pressure in the spot market. The regularly-exported products show a resistance to price cut, but the price of the products distributed in the market is down by US$20 - US$30.
As to Russian products, the price turned to remaining flat, and both offer and contract prices were maintained at levels in the middle of November.
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|last modified : Fri 04 Dec, 2015 [09:38]|