[Ferro-Alloys.com] Market price remains at high level, which is closely connected with the warming trend of downstream market.  It is reported that real estate market shows a warming trend, the statistics of house price of 70 major and middle cities released by National Bureau of Statistics shows that the price of new houses in 65 cities has risen. Cyclical low level of inventory of steel market and less pressure of market capital also contributes the price rise. According to the insiders, in April Ly Steel and Xiangtan Iron & Steel Co.,Ltd had achieved considerable benefit.  

Price Rise of Raw Materials is the Major Reason

The price of CaSi stands at high level, the major quote of CaSi in Inner Mongolia, Ningxia and Henan is in the range of RMB9,300—9,500/ mt. Cold steel strip has seen a market price fluctuation, now the price stands at RMB3,500/ mt.

The price of metal calcium has skyrocketed by RMB 1,400/ mt . The mainstream quote of calcium wire is RMB18, 000/mt in Henan and Shanxi, the price of calcium granules stands around RMB16, 500/ mt.  

Recently, according to the CaSi producers in Inner Mongolia and Henan, the production of CaSi is still in freezing period, many producers ceased producing CaSi alloy, instead they produce other profitable Ferro alloy, it is estimated that another 70 thousand tons of CaSi withdrew the market. However some producers still stick to the production of CaSi alloy. The monthly CaSi production of Baotou Qifeng Alloy Co.,Ltd  is around 700 tons. The monthly CaSi production of Shunfu Metallurgy Refectories Co., Ltd is about 400 tons.

With the cost rise of Al powder, the price of calcium wire and calcium granules also increases. Stage stocking of some market participants leads to the imbalance of supply and demand, thus driving the periodic price rise.

Market Demand Remains Stable and Waits to be improved

Ca cored wires may become an alternative of CaSi cored wires. Many sources introduced that CaSi cored wires mainly meet the domestic demand of the regular costumers currently.

International aspect: many countries focus on the African Chances which is expected to bring many opportunities. According to the incomplete survey, by the end of 10^th May, the exported CaSi cored wires to South Africa by India was 36 tons, in early May, the export volume of CaSi cored wires and Ca cored wires was totally around 52 tons.

Conclusively, chances and risks coexist in the market. Product quality oriented，enterprises should seize the chances so that winning the long-term existence.  

• [Editor:Yang Xue Jiao ]