Action To Rise Price Of Silico-Manganese Has Made A Pause And Turned To Watch Further Movements
The market tendency by item on imports of ferro-alloys into Japan at the 30th April of 2010 is as follows ;
<> General view = The base is a revival of steel production. In addition to a recovery of steel production in Europe, the USA and Japan, China is expected to produce 620 million tons of crude steel in 2010. There is a strong probability that the price of manganese ore to import into China as raw material in the second half of 2010 is anticipated to rise to a level of US$10 per Mn 1% CIF China. However, the prices of bulk ferro-alloys (ferro-silicon and silico-manganese) to be imported into Japan in 2010 are supposed to rise on a step of zigzags. The trading companies concerned had been bitterly experienced by a loss arisen from sales of bulk ferro-alloys in last year and, accordingly, are hesitating to purchase on a straight way these ferro-alloys. The high spirits surged in an early part of April have made a pause and the purchases at high prices have come to a standstill. Owing to the shaking taken place by electric furnace mills, Yen prices of bulk ferro-alloys settled with mills for shipment in a single month of May were unexpectedly unable to rise smoothly and this unsatisfactory result for trading companies has created a feeling of impatience.
<> Ferro-silicon = Russian ferro-silicon is now being offered at US$1,550 per metric ton CIF Japan for spot cargoes but this price is not workable on sales to Japan. Many of trading companies have recently purchased on spot base Chinese ferro-silicon at a lower price than US$1,400 per metric ton CIF Japan but the sales on this price level are going to disappear from the market. In this meaning, price of ferro-silicon to import into Japan is rising gradually but the high price of US$1,450 CIF has been neglected and the actual prices of ferro-silicon contracted with trading companies in Japan are in the range of US$1,420 - 1,430 per metric ton CIF Japan.
<> Silico-manganese = Reflecting a considerable rise of price for Indian silico-manganese as seen in an early part of April, price of silico-manganese to import into Japan has generally risen but, after that, it was known that Indian silico-manganese is possible to purchase on spot base at lower prices than US$1,600 per metric ton CIF Japan (US$1,550 - 1,580 CIF), and a rise of price for silico-manganese has come to a standstill. The cases to contract Chinese silico-manganese at US$1,620 - 1,630 per metric ton CIF Japan have been normalized and the price of US$1,650 CIF for Chinese product is not workable at present. A major T trading company once aimed to contract silico-manganese with electric furnace mills at a higher price than Yen 150,000 per metric ton delivered to mills for shipment in May but was not successful in the sales, excluding a small lot of 20 tons, and the remaining 480 tons are supposed to have been obliged to sell at Yen 145,000 - 150,000 per ton. Even trading companies, which have held the cargoes imported into Japan at a price level of US$1,300 CIF, are unable to secure the new cargoes at low prices, if their stocked cargoes are sold, and, from this point of view, these trading companies declined electric furnace mills to sell their stocks of silico-manganese at low prices.
<> Low carbon ferro-chrome = There is a view spread over the market that DLA of the USA will suddenly change their policy to release low carbon ferro-chrome as stockpiled by them, because of the thinned stocks, and may turn to resume their purchase of low carbon ferro-chrom through a tender. According to an information, many cargoes of low carbon ferro-chrome stockpiled by DLA seem to be carbon 0.2% minimum material and no cargo of carbon 0.1% maximum material would be stockpiled. The market price of low carbon ferro-chrome in Europe has risen to 225 US-Cents per lb. of Cr for carbon 0.1% max. material and, accordingly, spot price of low carbon ferro-chrome in Japan has risen to a level of 200 US-Cents per lb. of Cr CIF (205 - 210 US-Cents) for this carbon grade. Suppliers said that small lots of low carbon ferro-chrome have been already contracted at 210 US-Cents per lb. of Cr CIF Japan.
<> Silicon metal = The price of Chinese silicon metal with 5.5.3 grade for Japan has made a pause to rise and has solidified at US$2,370 - 2,380 per metric ton CIF. There is an opinion in the market that a further rise of price for silicon metal will be not possible for the time being. The reason is that the case to produce silicon metal in China even by using electricity generated from thermoelectric power is still possible to gain a certain profit and, therefore, Chinese plants have decided to increase their production of silicon metal. The usual pattern in China on silicon metal, which an increase in production of silicon metal toward summer season causes a fall of its price, has been thought to be unlikely in 2010, because of a drought continued from autumn of last year, but this view has currently turned to be careful. The reason is that a recent rise of price for silicon metal is encouraging a basic tone to increase Chinese production of silicon metal. In particular, the movements to produce more silicon metal in Guizhou Province, Yunnan Province, and so on by utilizing hydroelectric power are now marked. Owing to a rainfall started from the beginning of April, a drought in these provinces is being resolved.
<> Manganese metal = An accident occurred on the 12th of April in Huayuan district of China caused by the collapse of slag dam has resulted in injuries of workers and a temporary suspension of operations but the operations are being resumed gradually from the third week of April. However, the Ministry of National Environment of China is scheduled to investigate from May the problem of environmental pollution and it is marked to see an issue of this investigation. In the course of this tide, price of electrolytic manganese metal in domestic market of China has maintained a firm tone of CNY15,800 - 16,000 per ton ex. plant. Domestic price of this metal was once offered at CNY15,600 per ton but returned again to a level of CNY15,800 - 16,000 The purchases of electrolytic manganese metal by Chinese steel companies have sustained this price level. In view of the trouble happened in Huayuan district, steel companies in South Korea and Japan are in the market to purchase electrolytic manganese metal from China. The current price of electrolytic manganese metal offered from China for export is on a level of US$2,950 - 2,980 per metric ton FOB but these prices are not workable in Japan and actual contracts have been concluded at US$2,920 - 2,930 per metric ton FOB China.
<> Molybdenum = Molybdenum prices have turned to fall. The prices were on a basic tone to rise in March and April but, reflecting the sales for profit-taking, price of molybdenum oxide has fallen to US$17.20 - 17,60 per lb. of Mo CIF Japan, having returned to the price level at the end of February. Also, market price of ferro-molybdenum has fallen to US$42 - 43 per kg. of Mo CIF Japan.
<> Ferro-vanadium = Dealers are offering ferro-vanadium at US$33 - 34 per kg. of V CIF Japan, showing a basic tone to rise gradually. |
