[ferro-alloys.com] Current market trend of import of ferroalloy as of August 30th 2013 is as follows.

Silicon Metal: Chinese producers have raised its offer price due to the price hike of raw materials such as silica stone and charcoal. Besides, as the anticipation of resumption of demand for aluminium and polycrystalline silicon is strong in the Chinese domestic market, the producers are taking a strong attitude. The producers which raise the offer price meant for Japan for 5.5.3 grade for aluminium by USD 20 to USD 30 per tonne compared with the beginning of the month have increased. The reaction to the anticipation of high prices from the Japanese side is still weak. There is no additional purchase to increase the stock, and the wait and see attitude has continued.

Ferro-silicon: Chinese producers raised the offer price for domestic consumption further compared with mid August. This is because Chinese steel mills raised a purchase price in September by CNY 80 to CNY 100 per tonne. On the one hand, the offer price for export remained unchanged. This is because the cheap roundabout products via Vietnam have pushed down the prices in the markets such as Japan, Korea and Taiwan. Partly because the consumption is low in the summer season, the downward pressure from Japanese customers is strong and the contract price has been lowered by as much as USD 5.

Although the offer price for Russian products remains unchanged, the contract price also has been lowered by the pressure from the roundabout products via Vietnam. The price represents a decrease of USD 10 versus mid-August.

Silico Manganese: In comparison with mid August, Indian Rupee became weaker against US Dollar. Because of that, both offer and contract prices have continued to drop. The price in Rupee also stays at a low level, and the producers which suspend the operation are increasing. Albeit the price of imported manganese ore as raw materials will be lowered from September shipment onward, this will be balanced out by the Rupee depreciation and the price hike of coke and it can't be expected the production cost will be reduced. The producers have begun to cut production and refrain from selling at a low price and the atmosphere of the market with the offer price going up is strong. Some of the persons concerned with the market consider the current price is a rock bottom one.

In China, in preparation for a drought season in South China area and continuous holidays of the Anniversary of the Founding of the People's Republic of China, the demand is anticipated to go up because domestic steel mills will increase the inventory in hand. Partly because the steel mills raised a purchase price, the sales price in the market also went up. In conjunction with this, the offer price meant for Japan also has gone up, but there hasn't be any contract yet.