[Ferro-Alloys.com]Japanese spot silicomanganese prices continued to fall this week amid a supply glut as consumption continues to fall across China, India and Europe, market sources said Thursday, December 4.

Related media assessed the Japanese spot import market (65%Mn, 16% Si) at $960-985/mt CIF Japan this week, down from $990-1,015/mt CIF last week and from $1,025-1,035/mt a month ago.

Increased competition from Ukraine and China has forced Indian producers and traders to cut prices, sellers said."We are losing our Middle East market to Ukrainian sellers offering $1,010-1,020/mt CIF Turkey, so we need to go lower. The European market is not good so Ukrainian material is penetrating into the Middle East," said an Indian trader.

A second Indian trader said he was offering 60% Mn 14% Si material at $860/mt FOB India, which would equate to around $930/mt FOB for 65% Mn material.

"Chinese steel exports at low prices have affected Indian and European steelmakers and demand for ferroalloy has slumped. Infrastructure projects in India that are expected to boost demand are still in planning stages," the trader said, adding most Indian producers were running plants at around 40% of capacity.

A deal was reported closing at $985/mt CIF main Japanese port for January loading from India's Visakpatnam port for several hundred tons.

The buyer estimated the container freight at $20/mt.A buyer and a seller reported offers and sales interest for Indian silicomanganese at $960/mt CIF main Japanese port.Container freight from India's Visakpatnam to Nagoya were reported in a wide range of $20-80/mt and to other Japanese ports at $20-30/mt.Japanese traders said there were offers from China at $1,010/mt CIF Japan and from Ukraine at $1,050/mt CIF Japan, which failed to attract buyers.

Indian traders said spot supplies of Chinese-origin silicomanganese were increasing on the back of slow demand from Chinese steelmakers. Japanese traders said it may be material evading the 20% Chinese export tax.

The second Indian trader warned: "In 5-10 days, the $850/mt ex-plant offer [for 60% Mn 14% Si] will fall to $820/mt ex-plant."

• [Editor:Mike.zhang]