The market trend of import of ferroalloy as of 13 March 2015 is as follows.

<> Silicon Metal = In the Chinese domestic market, both offer and contract prices have risen as there is a shortage of supply of low-grade product of 5.5.3 grade. This is because the stock which was produced in a full-water season last year when the electricity rate was cheap was cleared, and albeit a small lot of cheap-priced products like 30 - 50 tons is seen sporadically, these will disappear in some time or other. Since a large lot of more than 100 tons will have to wait for production at plant, the shipment of export cargo is as late as mid-April and the producers submit slightly higher offer prices. 

In Japan, the customers' buying motivation is low because the price rose due to the impact from the increase in the price in China and the yen depreciation up to US$1 being equal to JPY120 went on for these two weeks. Most of the customers have a policy to refrain from buying until the yen depreciation is improved.

<> Ferro-silicon = The price in China has continued to be flat since before Chinese New Year holidays (18th to 24th of February). The price has remained in the situation without ups and downs because such things have been balanced out by one another as (1) Small and medium-sized producers' delayed resumption of operation, (2) Decreased sales of cheap-priced products and (3) Weak demand from domestic steel mills. Some market participants predict this situation will be lasting at least within March. Albeit the offer price for export remains unchanged, the exports to Japan and South Korea where the price downward pressure is strong are experiencing a difficulty.

In Japan, the demand for ferro-silicon becomes weak due to the adverse pressure by the cheap price of Indian silico manganese, and the contract price mainly for shippers' direct sales drops. The contract price for regularly-exported products is down by US$10 - US$15 per ton from the end of January.

The price of products distributed in the market dropped owing to (1) The volume of products via Vietnam with cheapest price is said to be going up, (2) Price competition with silico manganese and (3) Decreased price of regularly-exported products. Although the increase in the distributed volume of products via Vietnam is yet to be actually confirmed, several shippers reported the sales activities by the trading firms in Vietnam have increased.

Both offer and contract prices for Russian products also are down by US$10 - US$15 in reaction to the price downward pressure in the market.

<> Silico Manganese = The offer price submitted by Indian producers is down by US$5 - US$10 per ton from the end of February. Many of producers are making an appeal about their difficulty that the current price is down by US$70 - US$100 from the profitable line of business, but the price downward pressure in the market is still strong. On the one hand, it has yet to be clear whether the reduction in the export incentive rate rumored in India will be implemented or not, and some analyses come up to the surface that the implementation will be put off under the current situation of the price hovering at a extremely low level. 

In Japan, the trading is thin due to the customers refraining from buying in the end of the fiscal year, and the contracts are a few, of which the contract is sporadically seen with a price cut of US$10 - US$15 from the end of February. 

On the other hand, the price meant for domestic consumption was down by CNY50 per ton and the price meant for export was down by US$10 - US$15 owing to resumption of operation after Chinese New Year and decreased price of imported manganese ore. But, there was no particular contract meant for Japan. 

Currently, the rights and wrongs of antidumping duty on Australian silico manganese is now being argued in the U.S. Supposing the survey takes place, there is a possibility that Australian silico manganese also will flow into the Asian markets, and the price downward pressure in the Japanese domestic market will be strengthened further.

• [Editor:Sophie]