China devalued Chinese yuan for 3 consecutive days and set an exchange rate of RMB6.41 per US$1.00, which affected the whole ferroalloys of Chinese origin, and the prices of many of Chinese ferroalloys like Ferro-silicon in U.S. dollars dropped. Besides, the product prices in the competing countries are affected by this, and there has been a movement to reduce the prices of some products.

In China, Track and Field World Championships started on August 22 and will continue till August 30, and the regulation of operation of plants in the vicinity of Beijing started from around August 13. Besides, it has been decided that the regulation of plant operation will continue till Victory over Japan Day of September 3 and what to be intended for regulation will be spread. The loss in steel production during this period is calculated to be about 6 million tons. At the present moment, the ferroalloy markets in China are affected much by decreased consumption in the steel industry, and the price downward pressure is strong on any one of the items.

The market trend of import of ferroalloy as of 31 August 2015 is as follows.

<> Silicon Metal = In the Chinese domestic market, the price of low-grade products as a whole continues to decline, and the price of products meant for domestic consumption is down by around CNY200 per ton from the end of July. The prices for export in Chinese yuan and U.S. dollars dropped simultaneously, but the range of price reduction was not as much as expected by shippers and customers. The price is down by US$50 - US$60 from the middle of August and down by US$110 - US$130 from the end of July.

In Japan, the trading for delivery in September continues to be thin. Owing to the ample customers' in-hand stock and the strong anticipation of a price fall, the price cut in no small measure is required for the sales, and the few contract prices are down by around US$100 from the end of July.

<> Ferro-silicon = The explosion accident which occurred at Tianjin at midnight on August 12 directly hit Chinese ferro-silicon which uses Tianjin as a main shipping port. Ferro-silicon is treated as hazardous materials as it emits poisonous gas on contact with water, and the shipment of ferro-silicon from Tianjin has been still suspended. The export procedure is scheduled to be resumed on September 7, and the resumption of shipment is thought to be around September 10.

In China, the market stock was up due to the regulation of plant operation in the vicinity of Beijing, and the price meant for domestic consumption is down by around CNY150 per ton from the end of July. An impact on the export has yet to be seen, but the price in U.S. dollars is down by US$15 - US$20 due to devaluation of Chinese yuan.

In Japan, the regularly-exported products cause a shortage, which however is covered by the increased distribution volume of roundabout products and cheap products. Both offer and contract prices of regularly-exported products were down by around US$15 due to the devaluation of Chinese yuan. 

The price of products distributed in the market was down as a whole due to the increased ratio of distribution of cheap products in the domestic market, and down by about US$40 per ton from the end of July. 

On the one hand, both offer and contract prices for Russian products were down by US$20 - US$25 from the end of July.

<> Silico Manganese = The price of Indian silico manganese continues to show a tapering down trend, but in India, the drop in the electricity rate and the devaluation of rupee made the damage to the producers alleviated. However, there has been no change in such situation as many of producers' prices are below cost.

In Japan, the demand for steel mills is still low, and the trading of spot goods continues to be thin because of an anticipation of a price fall in the market. Under such a situation, the contract price was down by around US$40 from the end of July. 

The price in China maintained the same price level as the middle of August because the producers of silico manganese showed a reluctance to lower the price since the major resource company left the price of imported manganese ore unchanged in spite of the domestic mills' low consumption. Therefore, the offer price meant for Japan also remains flat and no export contract for Japan seems to have been made.

• [Editor:Sophie]