<> Silicon Metal = In the Chinese domestic market, the price of low-grade product of 5.5.3 grade was slightly up by CNY350 per ton from the end of February. Chinese customers have a strong buying motivation, and the contracts are made even with increased prices. There is an anticipation of a price fall owing to price drop like the product price as a result of the decreased production cost due to done application of a comparatively high electricity rate for a low-water season, in fact this is because of buying movement to give a priority to procurement of spot goods.

As to the export, the shippers were sick to the high price and the trading was thin. In Japan, the customers focus on purchasing cheap products, and in case the impression is strong on the price in Japanese yen, many of the customers refrain from buying. On the one hand, there are also the customers which give a priority to procurement of spot goods, and therefore the higher quotation remained unchanged from the prior one.

<> Ferro-silicon = The demand in the Chinese domestic market is weak, and the price downward pressure becomes strong in the market. When compared with the end of February, the prices of products with Si being 75% and 72% meant for domestic consumption are down by CNY100 and CNY200 respectively, and there is also an anticipation of a price fall in the market. This is because it is thought it takes more time that the demand and supply will be balanced albeit the shutdown by the small and medium-sized producers is prevailing due to aggravated profitability. Besides, Beijing is moving to host the Winter Olympic Games in 2022, and therefore there is a possibility that the producing activity in Hebei as a center for steel industry will be restricted, which results in weakened buying motivation of steel mills to buy raw materials.

As to the export, while the sound price meant for USA is maintained, the price meant for Japan and South Korea is affected by a strong downward pressure due to the inflow of the roundabout products. In Japan, the contract price of regularly exported products is down by US$35 - US$40 per ton from the end of February partly because of decreased demand arising from increased cheap products of silico manganese.

The price of products distributed in the market is down by US$45 - US$75 from the end of February owing to the pressure from silico manganese as well as increased cheap products which are exported from China via a third country. This is attributed to supply pressure from itself.

Both offer and contract prices for Russian products also are down by US$12 - US$20 in reaction to the price downward pressure in the market.

<> Silico Manganese = The offer price submitted by Indian producers is down by US$15 - US$20 per ton from the end of February. The price downward pressure still exists in the market, and the anticipation of a price fall is strong. As to silico manganese, there are several causes for concern whose movement will become clear after April such as (1) Reduction in the export incentive rate rumored in India, (2) Investigation on antidumping in Europe and (3) Voting for rights and wrongs of implementation of antidumping investigation on Australian silico manganese in USA. 

On the one hand, the price movement in the Chinese domestic market was poor and remaining unchanged from the middle of February. There is also an observation the price will stop declining, but the buying motivation of steel mills is low, and many of market participants see there is a strong possibility of an anticipation of a price fall in the future as the demand and supply balance is now kept only by decreased supply. The price for export remains flat, and there was no particular contract meant for Japan. 

• [Editor:Sophie]