The market tendency by item on imports of ferroalloys into Japan at July 29th 2011 is as follows:

General view

In the course of the severe movements of foreign exchange rates, it is hard to foresee an issue of the Japanese Yen rate and, therefore, trading companies are naturally losing their intention to imports ferroalloys into Japan. Because of the tightened supply of electricity, steel production in July to September quarter has to be reduced and, although it is so far not a remarkable matter, a reaction to the revived demand for steel products will be necessary to watch.

Ferrosilicon

According to information from China, an anxiety for electricity supply is anticipated to come out in Huanan district and the problem of electricity is supposed to be an important subject in China to confront with a constant tension. Domestic price of Ferrosilicon in China once rose to CNY 7,700 per ton as marked but, after that, turned to fall to CNY 7,000 and the Japanese trading companies concerned have a view that this fall of domestic price for Chinese Ferrosilicon will be inevitable to put a certain influence on the price to be offered for export. In particular, owing to the severely strengthened exchange rate of Japanese Yen against US dollar, Japanese side has shrunk an intention to import Ferrosilicon.

Silicomanganese

The price of silicomanganese (with Mn 65%) offered from India continued to fall for the last one year but has finally bottomed out to rebound. The highest price of Indian silicomanganese was USD 1,600 per metric ton CIF Japan as prevailed in April to May of 2010 but fell by 22% to USD 1,250 CIF as seen in June of 2011. However, the price of Indian silicomanganese for export has risen by USD 30 per tonne in the last 1 to 2 weeks. The high price offered recently from India is USD 1,300 per tonne CIF Japan but this price is not workable on the market here. Because of the chronically unprofitable production of silicomanganese to be exported from India, Indian producers are losing the strength as existed to be an enterprise and attempting to rise price of silicomanganese by means of utilizing some factors. In this meaning, the demand for silicomanganese from domestic market of India has become active and the cargoes destined to local market are said to have been sold out up to August shipment, having caused a good chance to rise price of silicomanganese.

Charge chrome

The benchmark price of South African charge chrome for shipments in July to September quarter has been settled by a reduction of 15 US cents per pound of Cr but the matter in question to be focused at present has now moved to the negotiations with stainless steel mills of Japan on spot cargoes of high carbon ferrochrome. Naturally, the price to be negotiated with mills on spot contracts has to take into consideration of those prevailing in China and the level of 93 to 98 US cents per pound of Cr is being normalized. For a reference, the price of this ferroalloy purchased by major stainless steel mills of China in a late part of July was on the level of 95 to 97 US cents per pound of Cr (value added tax is unpaid), having risen by 2 to 3 US cents from the bottom.

Low carbon ferrochrome

The price of low carbon ferrochrome (with carbon 0.1% max.) to be contracted with regular consumers of Japan for shipments in July to September quarter was initially targeted to be settled at 226 US cents per pound of Cr CIF but, after that, moved to fall and the contracts concluded at 222 to 224 US cents have been sporadically seen. Therefore, the atmosphere of price for low carbon ferrochrome has weakened as a whole.

Silicon metal

The movement to reduce the tax for export of silicon metal from China (15% at present) or to abolish it has been informed to be surging in China and this is thought to be an action taken by Chinese producers of silicon metal, which are suffering from the difficulties to operate and wanting to appeal this depressed situation to the Government. However, the reality of this movement is not confirmed yet. If this application is materialized, the price of Chinese silicon metal for export will dramatically fall and it will be necessary to take a cautious attitude for purchases of Chinese silicon metal for forward shipments. On the other hand, shippers have felt an anxiety for price of Chinese silicon metal but are still offering this metal at USD 2,600 per tonne CIF Japan, having remained unchanged.

Manganese metal

The problem has occurred in Sichuan Province of China and it is marked to see how extent does this trouble influence on production and shipments of electrolytic manganese metal. The problem is a big flood attacked Chengolu City of Sichuan Province and the slag dam was burst, having resulted in an environmental pollution. This trouble is supposed to restrict production of electrolytic manganese metal in this province. In addition, the production of electrolytic manganese metal in Huayuan (Hunan Province) and Xiushan (Sichuan Province) is being reduced and the structure for supply of Chinese electrolytic manganese metal has left some anxious factors. The international price of nickel has rallied and the production of stainless steel in China is anticipated to revive after summer holidays. These factors will be not negligible for price of Chinese electrolytic manganese metal. The price of this metal offered from China is on a level of USD 3,730 to 3,740 per tonne CIF Japan at present, having kept a firm tone.

Molybdenum

Dealers are now offering molybdenum oxide at USD 14.50 per pound of Mo CIF Japan, by which has bottomed out, and this price level is being maintained. Since the dealers concerned have made their rounds of disposing of their stocks, the inquiries to purchase molybdenum oxide at reasonable prices are being placed before suppliers and price of molybdenum oxide has bottomed out. However, the international price of molybdenum oxide is negative to rally and has remained on a similar level for a while.