<> Silicon Metal = The price of low-grade silicon metal in the Chinese domestic market maintained being flat from the end of December, and there is no indication the realization sales will take place before Chinese New Year holiday (18th to 24th of February). Such reasons for the above are provided as many of producers have already suspended operation due to the price remaining in the doldrums, comparatively high electricity rates for a low-water season have been applied in the southern region as a main production area and the transportation cost has become comparatively high due to the transportation methods being lost to coal.

On the other hand, the offer price for export rose by US$50 - US$80 in late this month. It is obvious the port stock for February shipment is not enough, but many of trading firms are wondering which are moving to purchase while thinking there is no ground for sharp price hike.

In Japan, the cheap products became scarce and the price made a slight recovery from the price decrease in the beginning of the month. Besides, some trading firms are trying to raise its offer price to the customers following the hike in offer prices in China. However, the demand in the Japanese domestic market is weak because no big consumption can't be expected during January to March, and the current contract price stays at being raised by around US$30 per ton.

<> Ferro-silicon = The price downward pressure is strong in the Chinese domestic market, but the price stopped declining after January 15. The major producers didn't change the offer price while taking a strong attitude, whereas the trading firms which are selling products as a small lot are trying to sell at an extremely cheap price.

In Japan, the contract price of products exported via a regular route dropped by US$30 - US$40 from the end of December owing to great impact from the cheap products exported via a route other than a regular route and the cheap products as a small lot.

The price of products distributed in the market also dropped, and the main contract price is down by US$20 - US$30 from the end of December. Following the price cut of the other sources, both offer and contract prices are down by US$20 - US$30 from the end of December.

For a reference, the customs statistics shows a total of 281.5 tons of Malaysian ferro-silicon was imported in December, and the import by port was 241.6 tons at Yokohama (headquarter) and 39.9 tons at Osaka (headquarter).

<> Silico Manganese = European Commission has begun to investigate the imposition of antidumping (AD) duty on Indian silico manganese, which gave an great impact to the producers in India. Supposing the result of the investigation proves guilty, as there is a possibility that the AD duty will be additionally imposed retroactive to the past, all of the customers have refrained from buying Indian products. By contraries, the excessive products have flown into the Asian markets, and the price in the Japanese domestic market dropped by US$40 per ton from the end of December. Besides, some trading firms seem to have raised its offer price to the customers by more than US$60. However, Indian producers still have a strong attitude toward submitting an offer price, and the drop range from the end of December stays at US$20.

On the one hand, the price in the end of December was maintained in the Chinese domestic market irrespective of weak demand in the Chinese domestic market and a price drop of imported manganese ore. The offer price meant for Japan was down by around US$10 from the end of December, but there seem to be no contract specifically.

• [Editor:Sophie]