Silicon Metal = The market in China hit the bottom in Mid-August, rebounded and rose by US$30 - US$40 per ton from the bottom price in the end of August. This is because the increased number of producers which ceased operation due to stagnating prices brought about removal of the situation of oversupply into the market, and the market reversed to tight supply the other way. Although there was a movement in some parts of the market to expect a price drop by converting products into cash before Mid-Autumn Festival (from 6th to 8th of September), there hasn't been such a thing as the products being sold at a low price at the moment.

In Japan, there is a small quantity of cheap spot goods contracted at the time when the market was declining, and the price difference between the upper and lower prices became bigger. However, it is anticipated that this will disappear from the market sooner or later and the price trend will become upward in a reflection of a price hike in the Chinese domestic market.

<> Ferro-silicon = In China, as some of major steel mills offered a price for September purchase at the same price as before, the prices of Si 75% and Si 72% grades remained unchanged from mid-August and took breath for a price hike. Because of CIQ inspection on export-oriented ferro-silicon restarting on July 15 and the extended range of detection of illegal export during June, the customs inspection at several ports seems to become intensified recently. Some cases happen that the shipment will be delayed due to prolonged inspection.

As to the offer price meant for Japan, the difference between the offer price submitted by Chinese producers and the price contracted is still big. This is because the inflow of the cheap products mainly by way of tender has continued, and the price information has worked against. Under such situation, the price has remained unchanged from mid-August.

Chinese cheap products via a third country have continued to be scarce. Albeit there has been an agreement between China and Vietnam not to grow the conflict between both countries, the recovery of border-crossing distribution for ferro-silicon is anticipated to take more 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 unchanged.

<> Silico Manganese = The price of Indian silico manganese remained unchanged from mid-August partly because Rupee continued to be strong against U.S. dollar and the domestic demand in Japan was weak.

In the Chinese market for ferro-silicon, the price stopped dropping in mid-August and there was a slight rebound to adjust the cheap price in some areas. Although the cheap electricity rate for a high-water season is applied in the southern regions as a main producer, the price was propped up by the price of imported ore. The situation of being almost no contract meant for Japan has continued.

<> Charge Chrome = As to the benchmark price of South African charge chrome, the negotiation for the period from October to December is anticipated to start in mid-September. Currently, overseas prices also are showing a stagnating trend without the atmosphere for price hike, and there is a strong indication that the customers will ask a price cut also in the next quarter. For a reference, the situation of no deal being struck on spot goods has continued.

<> Low-carbon Ferro-chrome = While the producers of low-carbon ferro-chrome in Japan have still continued a full-scale operation, the demand is going up and the import has in turn resulted in the increase. The overall supplied quantity is in just proportion, and the price of spot goods has continued to remain unchanged from the end of June. The negotiation for the period from October to December is anticipated to start in mid-September.

<> Molybdenum = The international market has repeated fluctuation based on US$13 per lb. Albeit the price rose to US$13.10 - US$13.20 at the end of August in the European market, the range of price movement has been limited because the market has been suffering from weak demand during the summer vacation. The price of ferro-molybdenum also has remained unchanged from US$32.00 per kg. But, the trade is anticipated to recover a bustling atmosphere in September.

China again shows a stronger presence as an exporting country, but it is not an integrated production from the domestic mines, and such analysis is made as there is a limit to sales at a cheap price in case of the processing by calcination (processing to molybdenum oxide) by using imported sulfide ore. Besides, the World Trade Organization (WTO) is anticipated to shortly recommend China to correct the export duty and export quota on molybdenum and, the market watchers have a great interest in the movement by China.

<> Manganese Metal = In China, the prices for domestic consumption and international export are up by CNY250 - CNY300 per ton and CNY70 - CNY100 per ton respectively from the end of July. The feeling of tight supply for spot goods has still continued in China, and the producers have raised the offer price while taking a strong attitude. In Japan, the special steel mills increased the purchase as the domestic consumption increased and the supply of SLP ferro-manganese as a rival metal could not catch up with the demand, which in turn became a following wind for a price hike. Besides, some of shippers consider US$2,300 per ton as an affordable price, and some anticipate the price will go up to around this price. In the meantime, the increase in the consumption of manganese metal was seen also in Europe where the summer vacation was over, and it is not uncommon that the contract is made at a price of more than US$2,400 per ton.

 

• [Editor:Sophie]