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Market Trend of Import of Ferroalloy as of 27 December 2018
= Price of manganese metal gyrates wildly, and price of FeV continues dropping in Europe and China =
The market trend of import of ferroalloy as of 27 December 2018 is as follows.

<> Silicon Metal = The main price of 553 grade in the current Chinese domestic market is CNY11,300 to CNY11,500 per ton and the same of 441 grade is CNY12,200 to CNY12,300 per ton, and both prices remain almost unchanged from the end of November. Making a contract is limited due to a thin trading. Because of uncertain development of the trade war between USA and China, while the demand for secondary aluminium alloy products is low, the realization sales before the end of the year was also at a low level. Chinese New Year in 2019 is February 5, and the focus in the current market is on whether the realization sales will occur before Chinese New Year.

The export price remained almost unchanged from the middle of December. The change in the foreign exchange has been few since the latter half of December, and the prices of both 553 and 441 grades are holding a state of being down by US$20 from the end of November.

Trading in the Japanese domestic market is also thin, and the market continued to be flat. The contract price for spot goods remains unchanged from the end of November.

<> Ferro-silicon = The price of ferro-silicon in China continues to show a tapering down trend, and the price cut rate for the product with Si being 72% meant for steel is bigger than the same for the product with Si being 75% mainly meant for magnesium metal. The current price is down by CNY200 to CNY300 from the end of November. The increased production cost resulting from raised electricity rate and environmental spending as well as the major producer's ongoing negative attitude in cutting a price have become a resistance to a downward pressure on prices, but the price cut has begun to occur toward Chinese New Year Holidays (from 4th to 10th of February in 2019) in addition to the demand itself being weak. This is because some of the producers want to sell at a profit before the price drops in January and some of them make realization sales so as to stock up on the raw materials before Chinese New Year. For reference, the increase in the electricity rate the Government of Ningxia Autonomous Region announced on December 19 is understood to be difficult to be implemented successfully because the industrial groups are resisting this plan.

As to the export, small-lot contracts with a bit cheaper price are sporadically seen. The said traders which aimed to sell at a profit seemed to have offered a bit cheaper price than others.

In the Japanese domestic market, a state of the price showing a tapering down trend is going on due to a price fall in China. The current price is in a state of being down by US$30 to US$50 from the end of November.

As to Russian ferro-silicon, the spot goods are still tight, but an extremely small number of contracts for the shipment in February were made in the spot market. The price is down by US$30 from the end of November.

As to Malaysian ferro-silicon, the producers (OM Sarawak and Pertama Ferroalloys) focus on the production for long-term contracts and Europe, and as to the spot goods for shipments in January, there was a contract at the almost same price as Chinese products.

As to cheap products via Vietnam and directly from mainland China, such achievement of the activities to detect injustice named as "Mission 2018-2019" is reported as the customs in Shenzhen busted an illegal exporting group on December 19.

<> Silicon Manganese = The price in the Chinese domestic market dropped sharply in the middle of December, but stopped declining at the moment eventually. The price of Inner Mongolian 6517 product as of December 27 is CNY8,100 to CNY8,200 per ton, down by CNY550 from the end of November. The ore price the overseas manganese mines submitted to China dropped and the demand in China was weak, which pushed down the price, but the trading became thin toward the end of the year, which is understood to have stopped a price fall. Besides, as there is a strong anticipation of a price fall in the market, the silico manganese producers have a fear the purchase price in January submitted by the steel mills in China will be lowered by a large margin.

The price of Indian silicon manganese turned upward slightly in the middle of December. The market participants provide such matters as a factor for a price cut as (1) Price of manganese ore drops and (2) Indian rupee is going on to be weak against U.S. dollar, but opine the resistance to a price cut has got strong since some of the producers are money-losing with the current price and there is no sale at a cheap price.

The trading in Japan is thin in the latter half of December, but the price rose slightly by being affected by an upward pressure on prices from the producers in India.

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.

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last modified : Wed 09 Jan, 2019 [10:27]
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