Reflecting Risen Prices In Domestic Market Of China And Also Troubled Deliveries By Heavy Snowfall

    The prices of bulk ferro-alloys ( silicon ferro-alloys and manganese ferro-alloys ) produced in China have risen further from the beginning of 2010. Reflecting the sharply risen domestic prices of ferro-alloys in China from those at the end of 2009, the prices of Chinese ferro-silicon and silico-manganese offered for exports to Japan have also risen.

    The prices ( per metric ton FOB ) of Chinese products offered for exports to Japan as of the end of last week were <> ferro-silicon : US$1,350 - 1,400, <> silico-manganese : US$1,520 - 1,550 and <> electrolytic manganese metal : US$2,850 - 2,900. This price of ferro-silicon offered from China at the end of last week has risen by US$50 per ton from that ( US$1,300 - 1,350 ) offered at the end of 2009 and also that of silico-manganese has risen by US$100 per ton from that ( US$1,400 ) at the end of last year.

    Many of Japanese trading companies were unable to commit their purchases of Chinese silico-manganese even at US$1,400 per ton for a caution of high price but it is now marked to see how do trading companies cope with this further rise of US$100 per ton. The reason is that price of Indian silico-manganese, as once sold at discounted prices, has currently risen to US$1,400 per metric ton CIF Japan. In view of the cost in China which is anticipated to increase further, price of Chinese silico-manganese for export has to rise and, by taking into consideration of this aspect, Indian silicomanganese has risen its price for export.

    Owing to the troubled inland transportation caused by a heavy snowfall, the deliveries of ferro-silicon from such bases as Inner Mongolia Aut. Region, Ningxia Hui Aut. Region, and so on to Beijing and Tianjin have turned to be out of order. The shipments of ferro-silicon from Tianjin port were attacked seriously by a dense fog occurred in November of last year, having resulted in many demurrages and delays continued for a long period. Following this problem, there is an anxiety in the market that the orderly inland transportation will be unable to maintain for Lunar New Year holidays to be started from the 13th of February. Also, the cargoes of Chinese ferro-silicon contracted on the beginning of December of last year at lower prices than US$1,200 per metric ton CIF Japan have a fear to be not delivered, because price of this ferro-alloy has risen steeply at present.

    The cost to produce silico-manganese in China has suffered from an anxiety for a sharp rise of price for manganese ore to import into China as raw material. However, from a whole point of view, the current prices of manganese ores are anticipated to remain unchanged on a firm tone. The price of Australian silicious manganese ore ( medium grade ore ) for shipments to China in January to February of 2010 has been confirmed to be on the level of US$6.50 per Mn 1% CIF China as rolled over from the last case. Also, the price of South African medium grade manganese ore for shipments to China in January - March quarter of 2010 has been settled on a similar level to that ( a little lower price than US$6.00 per Mn 1% CIF ) contracted for shipments in October - December quarter of 2009. However, the price of South African low garde manganese ore has risen to US$5.80 per Mn 1% CIF China for February shipment in comparison with US$5.50 CIF for January shipment.

    The current price of silico-manganese in domestic market of China is CNY8,400 per ton ( corresponding to US$1,235 ) and, as a result of simple calculation, this domestic price will come to US$1,482 per metric ton FOB China, including the duty of 20% on export. Also, the domestic price of Chinese ferro-silicon at present is CNY6,200 per ton ( corresponding to US$911 ), which will come to US$1,140 per metric ton FOB China, including the duty of 25% on export. However, because of a scarcity of actual cargoes, workable price of Chinese ferro-silicopn for export has to add a premium of US$100 - 200 per ton.

    For a reference, spot price of Chinese high carbon ferro-chrome in domestic market has risen to CNY8,200 per ton ( corresponding to 99 US-Cents per lb. of Cr ) for material containing 55% min. of Cr. Shanxi Taigang, a producer of ferro-chrome in China, has offered high carbon ferro-chrome with Cr content of 50% min. at CNY7,800 per ton for February shipment by a rise of CNY300 per ton from the last one. Spot price of charge chrome to import into China has also risen to a level of 90 US-Cents per lb. of Cr CIF.