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Market Trend of Import of Ferroalloy as of 15 February 2017
= Drop in price of manganese ore has impact at every place =
The market trend of import of ferroalloy as of 15 February 2017 is as follows.

<> Silicon Metal = The price movement of silicon metal was dull also in the Chinese domestic market right after Chinese New Year holidays were over, but the price of both low and high-grade products rose slightly last week. This is because while the operating rate hovers at less than 35% in Sichuan and Yunnan, the tight feeling has been generated in the market. The price of 553 grade is up By CNY100 per ton from the end of January, and the price for export is also slightly up due to cheap products famine.
In the Japanese domestic market, the trading is thin owing to the customers' ample in-hand stocks and no big price movement has been seen.

<> Ferro-silicon = In the Chinese domestic market, the price began to drop after Chinese New Year was over. The current price of the product with Si being 75% dropped drastically to CNY350 - CNY550 per ton from the end of January, such reasons for which are provided as (1) Multiple producers continued operation even during Chinese New Year holidays which led to the excessive supply, (2) As the customers in China purchased surplus to their needs before Chinese New Year, the buying motivation is weak at the moment, (3) The price of silico manganese as a rival metal continues falling and (4) In Shandong which ranks third in domestic production of crude steel, the provincial government considers the orders to suspend operation of steel mills in the urban area which can't satisfy the standard of pollution control measures. For this reason, as a result of the fact that many of the products which could not be sold out in the domestic market were exported, the contract price of Chinese ferro-slicon was pushed down also in Japan and South Korea.
The price of regularly-exported products in Japan is down by around US$70 from the end of January.
As to Russian ferro-silicon, there is a feeling of tight supply of the spot products, but while the Japanese domestic market strengthens the downward pressure, the contract price is down by around US$10 from the end of January.
As to Malaysian ferro-silicon, the contracts are mainly for shipments in March and April. In response to the downward pressure in the market, the contract price is down by US$10 - US$30 from the end of January.

<> Silico Manganese = In the Chinese domestic market, the retail price of imported manganese ore continues declining, and all the prices of manganese -containing ferroalloys are going down. South32 offers the lump ore with Mn being 46% meant for China as March shipment at the price of US$5.50 per lb, down by US$1.50 from the final price for February shipment. The port stock is more than 2.82 million tons and marked a high level since August 2015, which becomes one of the factors for continuous drop in the retail price. For this reason, the price of silico manganese in the Chinese domestic market drops to a large extent, and the price meant for domestic consumption is down by CNY950 - CNY1,000 per ton from the end of January. The offer price meant for Japan was also down by around US$150, but no contract was clinched.
In the Indian domestic market, the price of silico manganese of 6517 product is down, which is due to the fact that the anticipation of a price fall becomes strong owing to the decreased price of imported manganese ore, and both trading firms and producers have lowered the offer prices. Some of the producers seem to feel disgusted at aggravation of profitability and try to change to chrome-containing ferroalloy from manganese-containing ferroalloy, but the decrease in the supply volume has yet to come up to the surface.
It becomes difficult for Indian silico manganese to be contracted in the Japanese domestic market at more than US$1,100, and this is down by US$40 - US$50 from the end of January.
As to Malaysian silico manganese, the contract began to be made with electric furnace mills in Japan. The price has yet to be made clear, but seems to be based on the price of Indian products after all.

<> High-carbon Ferro-chrome (including charge chrome) = The situation of no trading of spot goods of high-carbon ferro-chrome having been clinched is still going on in Japan. The negotiations on the benchmark price for Europe and the contract price for Japan for the period from April to June are anticipated to start after the middle of March, but it becomes difficult to make a prediction because of the complicated situations like the electricity rate in South Africa is anticipated to be raised from April 1, whereas the price of Chinese high-carbon ferro-chrome drops at he present moment.

<> Low-carbon Ferro-chrome = The trading in the spot market continued to be thin without price movement. The contract price remains unchanged from the end of January. The negotiation on the regular price for the period from April to June is expected to start in the latter half of March.

<> Molybdenum = The price of molybdenum has continued rising slightly, and the prices of both molybdenum oxide and ferro-molybdenum were up by 0.1% - 0.5% from the end of January. In the European market, the spot price was reported to be down in the middle of January, but the price of ferro-molybdenum makes a recovery to around US$18.00 per kg at the present moment as the supply volume from China to the entire market was at a low level.
On the one hand, the LME molybdenum price (cash seller and settlement) on February 14 was US$15,250 per ton (=US$6.917 per lb) and continued to be flat from late October.

<> Manganese Metal = The price of manganese metal in China was slightly down from the end of January, which is due to the facts that the biggest producer within the country which uses imported manganese ore as raw materials lowers the offer price slightly owing to the price downward pressure in the market and the production curtailment expected by some of the market participants did not occur in Guizhou.
The main price meant for the Chinese domestic market and the price meant for export are down by CNY100 - CNY150 per ton and down by US$10 - US$15 per ton respectively from the end of January. The expectation of a price fall is strong in the market, and many of the customers refrain from buying.
Japan imported a lot of manganese metal from China last year, and the customers have ample stocks in hand. Besides, many of the customers think to refrain from concluding a new contract until March owing to the expectation of a further price fall. Multiple trading firms can't clinch a contract this month due to extremely thin trading, and the price of the very few contracts is down by US$0 - US$50 from the end of January as a result of the high-priced product being skipped out.
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last modified : Wed 22 Feb, 2017 [10:31]
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