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Market Trend of Import of Ferroalloy as of 29 January 2016
= Prices of several items go up due to securement of spot goods before Chinese New Year =
The market trend of import of ferroalloy as of 29 January 2016 is as follows.

<> Silicon Metal = The price of silicon metal in China still stops declining. This is because the ratio of the producers which are still operating in China continues to be less than 30%, and no realization sales took place before Chinese New Year Holidays (7th to 13th of February). The price for export stops declining as the depreciation of Chinese yuan in the middle of January took breath.

The price of spot goods in Japan dropped by US$20 - US$30 owing to a weak demand and rushed sales by some of trading firms.

<> Ferro-silicon = As to the product with Si being 72% meant for steel mills in China, its price went up drastically in the middle of the month and thereafter shows a gradually rising trend, but there is no problem for distribution of the products.

On the other hand, as to the product with Si being 75% meant for export, non-delivery and delay in delivery occurred due to the shortage of the products to be shipped during January. Besides, as several smugglers who passed the customs clearance by disguising as a duty-free product were busted, the roundabout and illegally exported products have decreased drastically in the Japanese and South Korean markets, and the shippers which handle regularly exported products submit a relatively aggressive offer price.

For a reference, at the port of Tianjin where the export procedures for ferro-silicon was suspended from the time when the explosion accident happened in August 2015, the story has come up to the surface that the export procedures will restart after reconstruction of facilities, which seems to still take a long time.

In Japan, the movement to struggle to secure the spot goods can be seen ubiquitously due to the shortage of the products arising from decreased products distributed in the market including roundabout products. For that reason, the cheap products of Chinese regularly exported products have got scarce and the price rose, which led to the contract price being up by US$35 - US$50 per ton from the end of December. The price of product distributed in the market is up by around US$100 ditto in a reflection of shortage of supply.

The price of Russian product is down against a background of a weak ruble whereas the price of Chinese product rose, and both offer and contract prices are down by US$10 from the end of December. Besides, the volume discount will be available depending on the shipper, and the cheaper price than this can be seen sporadically in the tender result.

<> Silico Manganese = The operating rate in India is down from December, and the supply volume has been reduced further. For that reason, in spite of a weak rupee going on, the producers raise the offer price, and some case shows the price is raised by US$20 per ton for a period of 2 weeks.

In the Japanese market, the demand will be weak during January to March, but some of the customers which accept an increase in the offer price have appeared so as to give priority to securement of spot goods. Currently, both offer and contract prices are up by US$20 - US$40 from the middle of January.

The price in the Chinese domestic market went up drastically furthermore in January, and is up by CNY400 - CNY450 from the middle of January. There are a lot of factors for price hike such as an increase in the production cost due to raised electricity rate in the number one domestic producing area, Guangxi Zhuang and Hunan in addition to the fact the price of imported manganese ore as raw materials stopped declining owing to drastically decreased port stock. The offer price meant for Japan was also up by around US$20, but no contract was clinched.

For a reference, as to the imposition of the antidumping (AD) duty on Australian silico manganese in the U.S., the announcement of final decision by the Department of Commerce (DOC) is delayed, and it becomes unclear whether this will be implemented or not. It also becomes unclear whether the imposition of AD duty on Indian silico manganese will be implemented in Europe or not, and the rumor comes up to the surface that it will be implemented in Europe within March.

<> High-carbon Ferro-chrome (including charge chrome) = The contract price of high-carbon ferro-chrome for the period from January to March in 2016 meant for Japan has yet to be announced.

As the benchmark price of South African charge chrome meant for Europe was fixed by being down by US Cents 12 from the prior period, the market participants have an optimistic view that the price meant for Japan also will have the same price cut and the announcement will be made within this month at the latest.

For a reference, the situation of almost no trading of spot goods of high-carbon ferro-chrome having been clinched in Japan is going on.
last modified : Thu 04 Feb, 2016 [10:17]
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