[Ferro-Alloys.com]As to the price negotiation (in Japanese yen) for imported ferroalloys (ferro-silicon and silico-manganese) meant for electric furnace (EF) mills in Japan for the period from April to June in 2016, the price of ferro-silicon is JPY115,000, down by more than JPY9,000 from the prior period. On the one hand, the silico-manganese price of JPY81,700 is common, which is also down by more than JPY9,000 from the prior period. 

In addition to the price in the main producing areas like China, India and so on being slightly down, the forecast about the demand for ordinary steel is down by about 3% from the prior period (January - March) and the yen becomes stronger against U.S. dollar by about 7%, which leads to the strong price downward pressure by steel mills.

 

However, as to ferro-silicon, the successful bidding at a cheaper price than a current purchase price is occasionally seen, and some market participants opine with troubled eyes that there will be a negative margin and/or a nondelivery case. This is because the cheap products like roundabout products via Vietnam is in a state of the distributed volume continuing to be grossly down from last October for multiple reasons, and it is still unclear when the distribution will restart.

 

As to silico-manganese, in addition to the weak demand in the Japanese domestic market as aforementioned, the demand as a whole in the Asian market is weak and the demand and supply balance is in a state of oversupply. Besides, partly because the rising trend for the price of manganese ore as raw materials has been settled, the spot market is anticipated predominantly to have no big rise in the future price and have a continuing small price fall, and the anticipation of a price fall seems to appear also in the quarterly regular price.

 

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