TEX Update On Japanese Ferro alloys Imports Market Scenario.

The market tendency by item on imports of ferroalloys into Japan at April 15th 2011 is as follows:

General view

It is still hard to look over the economy of Japan for the near future. However, while a substantial cut by 25% of electricity supply has been planned to implement in July to August, steel companies of Japan, mainly electric furnace mills, are in the direction to increase in advance their production of crude steel in April to June 2011 quarter. Following this tide, consumers have inclined to increase their inquiries for ferroalloys as sub raw materials for steel production. At all events, an atmosphere of the market is easy to create a blue sentiment but this movement, being taken by consumers, is expected to change the negative mood for sales of ferroalloys. Nevertheless, in view of the fact that prices of manganese ores for May shipment to China have been reduced, market prices of manganese ferroalloys are supposed to develop on a weak tone.

Ferrosilicon

Yen price of ferrosilicon contracted with electric furnace mills for shipments in April to June 2011 quarter have had a considerable reduction of JPY 10,000 to JPY 15,000 per tonne as compared with those fixed for the preceding quarter of January to March 2011. Because of the steeply risen Yen prices settled for October to December quarter of 2010, when Chinese ferrosilicon had faced a panic, it is thought to be inevitable to rectify largely Yen prices for April to June quarter. However, under the present situation, which a rumor of the radioactive rays is damaging deliveries of cargoes, it is difficult to secure actual cargoes of ferrosilicon for forward shipments and, from this point of view, the considerably reduced Yen prices of ferrosilicon for April to June quarter will reach the bottom. The trading companies concerned have taken an attitude to reject the lower Yen prices bidden by consumers. The current price of Chinese ferrosilicon is in the range of USD 1,520 to USD 1,530 per tonne CIF Japan by a rise of USD 20 per tonne, including an increase of the charges at wharves in Japan.

Silicomanganese

Since USD prices of manganese ores to import to China have been unexpectedly reduced for May shipment to China, an atmosphere of the market is moving to change. Reflecting a raise of the cost (by USD 40 per tonne) for production of silicomanganese caused by a rise of electricity fees enforced in India from the April 1st 2011, Indian shippers are currently offering silicomanganese at USD 1,320 to USD 1,330 per tonne CIF Japan by a rise of USD 40 per tonne compared to that prevailed on the beginning of March. However, a fall of prices for manganese ores as its raw material has put a substantial impact on prices of manganese ferroalloys and market price of silicomanganese is supposed to move hereafter on a weak tone.

Charge chrome

Stainless steel companies of Japan have also agreed to rise the benchmark price of South African charge chrome by 10 US Cents per lb. of Cr for shipments in April to June quarter and, accordingly, new price is 143 US Cents per pound of Cr CIF Japan. The system of surcharges for raw materials to produce stainless steel has been functioning orderly in Japan and, therefore, the soil to discuss about a propriety of this system is thin in Japan compared to that in Europe. The exports of stainless steel products from China have marked Europe as an important market, where is always endeavoring to purchase raw materials at discounted prices, and stainless steel mills in Europe have strongly felt an anxiety for domestic price of high carbon ferrochrome (charge chrome) prevailing in China, which is on a level of 110 US cents per pound of Cr.

Low carbon ferrochrome

The prices of Russian low carbon ferrochrome (with carbon 0.1% maximum) settled with regular consumers in Japan for shipments in April to June 2011quarter are in the range of USD 233 to USD 235 US Cents per pound of Cr CIF, having risen by 23 to 25 US cents per pound of Cr compared with those for the preceding quarter of January to March. Spot price of low carbon ferrochrome has actually risen to a level of 240 US Cents per pound of Cr CIF Japan for carbon 0.1% maximum material and, therefore, the prices insisted by producers' side have been accepted by consumers. The background is that price of chrome metal, which is a competitor for low carbon ferrochrome, has risen to a certain extent.

Manganese metal

While electrolytic manganese metal produced in China is a typical metal to fluctuate its price, the range of the volatility has been restricted in both of the highest and the lowest. In the boxed movements of USD 4,000 per tonne as the highest and USD 3,700 as the lowest, price of Chinese electrolytic manganese metal has been fluctuating during 3 to 4 months at present. The latest movements of price for this metal once fell to a level of USD 3,780 per tonne CIF Japan from the end of March to the beginning of April but turned to rise to a level of USD 3,800 CIF at present. This rally of price for electrolytic manganese metal has been influenced by a rebound of domestic price, having risen to CNY 19,500 per tonne.

Silicon metal

Since China has entered into a rainy season in April to June 2011 quarter as usual, price of Chinese silicon metal was expected to fall but the shippers concerned had taken a bullish attitude for their sales of Chinese silicon metal with 5.5.3 grade and maintained a high price of USD 2,650 per tonne CIF Japan for shipments up to April. However, it was informed that domestic price of silicon metal in China is weakening as a normal case in spring, and it is marked to see how does this weak tone of price for Chinese silicon metal influence on the price to be offered for export.

Source : steelguru.com