The market trend of import of ferroalloy as of 15 October 2014 is as follows.

<> Silicon Metal = At the moment when one week has passed since China National Day (1st to 7th of October) was over, the export of high grade products such as 2202 and 3303 grades also went up , and the FOB offer price for export was up by US$40 - US$60 per ton from the one before holidays. The price of 553 grade also rose together and the offer price for export was up by around US$20 per ton.

This is because the demand for domestic consumption is strong and the cost increase arising from the application of cheap electricity rate in a high-water season being over in the southern region as a main producing area was passed to the offer price for export. Furthermore, it is rumored in the market that the electricity rate in a low-water season will be up from last year. Some of producers make products to accumulate stocks and take it as a factor for a hike of offer prices.

At the moment, the offer price meant for Japan is seen sporadically at a level of more than US$2,250 per ton CIF, but the trade in the domestic market is thin, and the contract price stays at around US$2,200. In September, some of customers already purchased what to be required within the year or in the period from January to February next year.

<> Ferro-silicon = In China, albeit the price of 75 % product rose by CNY50 per ton after the holidays were over, this was a temporary phenomenon and the price returned to the original one. Now the offer prices from the producers are the same as the end of September. On the other hand, the price of 72% product which dominated the Chinese domestic market shows a downward trend, which arises from increased production capacity as well as 72% product and 70% product being subdivided in the market. A part of share has been taken by cheap 70% product, and the prices of 72% product for both domestic consumption and international export have been lowered.

In Japan, although there has been no movement of recovery in the distributed quantity of roundabout products via Vietnam, the cheap products other than regularly exported products flow into the market in another way, and keep the domestic contract price not to rise further. For that reason, both offer and contract prices have remained unchanged from the last time.

Albeit the Chinese cheap products via Vietnam have flown into Japan, but no active movement can been seen. However, such feeling is also expressed as the goods distributed in the spot market has become less since the long-term contract for electric furnace in the period from October to December finished in September. Both offer and contract prices have remained unchanged from the last time.

The trade of Russian ferro-silicon is thin in the Japanese domestic market, and the price has had no change and continued to remain flat.

<> Silico Manganese = Indian silico manganese tried to resist to the downward pressure on the price stemming from the weak demand throughout the world while referring to the rumor being whispered in India that the export subsidy will be abolished and the damage on the infrastructure due to a large-size cyclone which hit on October 12, but the effect was minimal. Although the offer price meant for Japan remained unchanged from the end of September, the contract price was down by around US$10. However, many of customers are taking a wait-and-see attitude while expecting the improvement in the yen depreciation.

The market for silico manganese in China showed an downward movement in the week after the holidays of China National Day. This is mainly because the steel mills offered their purchase price for October delivery by a decrease of CNY50 - CNY100 per ton versus the prior month. However, the increased production cost due to the increased price of imported ore and the termination of application of electricity rate in a high-water season restricted a price cut by producers, and the price has stopped being cut further up until now. The situation of being almost no contract meant for Japan has continued.

 

• [Editor:Sophie]