In China, the market for 553 grade as a low-grade product stopped declining. But, as compared with the end of October, the price is down by CNY200 - CNY300 per ton. This is because it's been forecast that the operational rate will go down and the supply quantity will be reduced due to the increase in the production cost arising from the fact that the comparatively high electricity rate for a low-water season will be applied in the main producing areas such as Sichuan and Yunnan from December. The ratio of electricity rate in the production cost for silicon metal is high, and it is said the hike at a rate of CNY0.1 per kwh will make the production cost raise by more than CNY1,000 per ton. 

In Japan, the price negotiation started for the contract covering the period from January to March in 2015 from November 17, and will move into high gear during 1st to 5th of December. In anticipation of the car production in the period from January to March in 2015 being on a good note, the demand for aluminium is strong, and the price which temporarily dropped in the spot market made a recovery partly because of the anticipation of a price hike in the Chinese domestic market. Resultingly, the contract price remained unchanged from November 14. Since there was a shipper which raised its offer price by US$20 - US$40, there is a possibility that the price will go up slightly in both China and Japan in early December. However, the fluctuation in the foreign exchange is the biggest agita factor for customers and trading firms.

• [Editor:tianxiao]