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Market Trend of Import of Ferroalloy as of 31 January 2017
= Movement of ferroalloy prices becomes few as Chinese New Year already started =
The market trend of import of ferroalloy as of 31 January 2017 is as follows.

<> Silicon Metal = The price of silicon metal in the Chinese domestic market stopped moving in the middle of January, and thereafter continued being flat. While the major producer in China expressed its intention to restart operation soon at the turn of Chinese New Year, the multiple producers in Yunnan where the electricity rate will be raised have a company policy to postpone restarting operation, and therefore it becomes unclear to forecast the market after the holidays are over. As Yunnan as a main producing area for premium products expressed its production cut, the prices of 3303 and 2202 grades were up right before Chinese New Year.

In the Japanese domestic market, the trading is thin owing to the customers' ample in-hand stocks and reluctance to incur foreign exchange losses, and no big price movement has been seen since the middle of the month.

<> Ferro-silicon = In the Chinese domestic market, the price stopped declining around January 10, and China entered into the Chinese New Year holidays while the price was remaining at the same level. As to the movement after the holidays are over, while there is an opinion that ferro-silicon also will make a recovery due to the increase in consumption as the steel mills in China will improve the operating rate, the various forecasts came up to the surface such as the likelihood the consumption will stagnate due to regulations on operation of plants in Hebei as a countermeasure for air pollution in Beijing and the multiple ferroalloy plants will be ordered to stop operation by the inspection of the Ministry of Environmental Protection of China, which makes the future movement unclear.

The inspection team of the Ministry of Environmental Protection of China operated energetically even before Chinese New Year like making no-notice inspections and inspections with TV coverage, and many of the ferroalloy producers were ordered to stop operation also during January. As an example, there were news reports that the ferroalloy producer in Gansu was ordered to cease operation including hydropower generation, and 24 persons in the city authority were also examined their own responsibilities for insufficient guidance. This producer is a middle-ranking firm delivering high-purity products of Ferro-silicon to multiple special steel mills within China, and had a strong connection with the local government.

The shipments and business negotiations meant for export were suspended owing to the Chinese New Year holidays, and the business activities are anticipated to restart from February 6.

The price of regularly-exported products in Japan also stops declining and there has been no price movement since the middle of January.

As to Russian ferro-silicon, there is a tight feeling of supply of the spot products, and even if the contract is made for immediate shipments, such possibility is indicated as the shipment will be made in April depending on the quantity. The contract price is down by US$15 - US$25 from the end of December.

As to Malaysian ferro-silicon, the contracts are mainly for shipments in March, but if the shipping lot is small, it will be also possible to make contract for February shipment. The contract price is down by US$70 from the end of December.

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last modified : Tue 07 Feb, 2017 [10:55]
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