The feeling of excess supply in the Chinese market was dispelled in late May, and the price turned up. This is because the supply became tight due to prevailed operation stop of producers arising from the price stagnating up to now and Chinese steel mills raised their purchase price for June delivery. Especially, the price hike range of products with Si being 75% is big due to decreased production volume of major producers and the price became higher than the products with Si being 72% as a main product in China by CNY 300 per ton. The price for export also has gone up, and albeit the offer price from major producers has remained flat since mid-May, the contract price in the Japanese domestic market has rebounded and gone up by US$5 - US$10 per ton.

The situation of Chinese cheap products via the third country being scarce has been going on. The distribution via ground transport routes on the west side of the border continues although the volume is small, but the cargo shipped in Vietnam is a tied one and only specific trading firms can purchase. At the moment, although the main products distributed in the market are the ones with Si being 72% which is shipped via China's regular export route, its price is higher than 75% products and pushes up the price of the products distributed in the market. 

Russian products keep its price in spite of the prices of aforementioned 2 sources rising, and remains at the same level as mid-May. The final decision (Antidumping investigation on Russian and Venezuelan products) to be made by U.S. Department of Commerce has been put off till the end of July. The fear has been voiced that this matter will be politically utilized for Ukrainian matters and the matter of territorial waters between China and Vietnam. 

• [Editor:Phillip.Feng]