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Market Trend of Import of Ferroalloy as of 30 November 2018
= Price of manganese metal continues to drop, and price of FeV rebounds in Europe =
The market trend of import of ferroalloy as of 30 November 2018 is as follows.

<> Silicon Metal = The main price of 553 grade in the current Chinese domestic market is CNY11,300 to CNY11,400 per ton, down by CNY800 from the end of October and the same of 441 grade is CNY12,200 to CNY12,300 per ton, down by CNY600 ditto. The price becomes stabilized thanks to the application of a comparatively high electricity rate for a low-water season usually in November, but the price cutting mood in the market is strong this year. The producer's shut-down has been already prevailing in Sichuan (ranks third in the domestic production) and Chongqing City (ranks fifth ditto), and the supply volume has decreased, but the demand from the aluminium industry in China is weak and the stocks distributed are ample, which leads to a continuing tapering down trend in the market. As to the export, while there were multiple tenders by overseas customers from last week to this week and the inquiries were many, there were producers and traders which hurried realization sales, which gave a boost to a price cut. Besides, the port stock is also ample and an anticipation of a fall continues.

In the Japanese domestic market, partly because the tenders to purchase for the period from January to March got centered, the price drop was accelerated in a single burst. The contract price for spot goods is down by US$150 to US$170 from the end of October.

<> Ferro-silicon = The lower price of ferro-silicon in China becomes severe, and the current price maintains the same level as the end of October. Such information flows as the Provincial Government of Ningxia (ranks second in the domestic production) will implement the regulation of operation on the industrial producers including steel, cement, ferroalloy and so on from December 1, and the possibility has come up to the surface that the supply will be reduced furthermore. An anticipation of high prices occurred in the market, and buying has become dominant at once in the futures market, but both seller and buyer are cautious in the spot market, and the movement has yet to become big.

In the Japanese domestic market, a state of no price movement being made is ongoing, and a state of the current price being down by US$20 to US$30 from the end of October is maintained.

As to Russian ferro-silicon, the spot goods are still tight, but a small number of contracts for the shipment during December to January were made in the spot market. The price is slightly up from the middle of November, but is in a state of being down by US$15 from the end of October.

As to Malaysian ferro-silicon, the producers (OM Sarawak and Pertama Ferroalloys) focus on the production for long-term contracts and Europe, and no offer price for the spot goods as to the shipments during December to January was submitted.

<> Silicon Manganese = The lower price becomes severe in the Chinese domestic market, and continues to remain almost flat from September. The current price of Inner Mongolian 6517 product is CNY8,650 to CNY8,750 per ton, down by CNY50 from the end of October. Such reasons seem to prop up the price as (1) Price of imported manganese ore hovers at a high level, (2) Application of a comparatively high electricity rate for a low-water season started in the southern production area, (3) Production in Ningxia (ranks second in the domestic production) will be restricted from December 1 and (4) Production volume in Ulanqab, a main production area in Inner Mongolia (ranks first ditto) drops due to continuing power shortage. No contract meant for Japan was made this time, either.

The price of Indian silicon manganese remained almost unchanged from the middle of November. Albeit there were such price raising factors as (1) Increase in manganese ore price, (2) India rupee became strong against U.S. dollar and (3) Producers have feelings of resistance toward a price cut, European customer's buying motivation for export is weak and the customers in Asia are negative in a price increase, which creates the situation that a higher price becomes severe.

In Japan, since the customers have reluctance to buy at a high price and the selling motivation of a trading firm is strong, the price receives a downward pressure. However, as the price of Indian product as a supply source doesn't fall, the respective trading firms are experiencing hardships.

As to Malaysian silicon manganese, OM Sarawak and Pertama Ferroalloys Sdn. Bhd. are producing, and the price seems to be at the same level as Indian products.

<> High-carbon Ferro-chrome (including charge chrome) = The import of high-carbon ferro-chrome is mainly based on a long-term contract, and the state of no trade of spot goods being made is still going on. The negotiation on the benchmark price of South African charge chrome meant for Europe (January to March in 2019) is expected to start from the middle of December, and it has been voiced in the beginning that the price is forecast to be raised, but the forecast made by market participants is going to lean toward the possibility of a price cut for such reasons as (1) Price in China continues to show a tapering down trend and (2) Now is the season when the production of ferro-chrome in South Africa is active.

The price in China continued to show a tapering down trend from the latter half of October to the former half of November. The price stops declining at the moment, but is in a state of being down by 0.7% from the end of October. Many of the market participants forecast the price will come down partly because the December purchase price submitted by Tsingshan Iron & Steel was down from the prior month.

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last modified : Fri 07 Dec, 2018 [11:10]
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