Demand in China and Europe is lower than expected, and prices of several products continue to be down =

The market trend of import of ferroalloy as of 15 October 2015 is as follows.

 

<> Silicon Metal = The prices of low-grade products in the Chinese domestic market continue to be almost flat from the end of September. This is because there is no noticeable increase in the consumption albeit the recovery in the consumption and the price hike after China National Day were expected, and the producers of silicon metal also have no intention to be in a hurry to sell before the increase in the electricity rate from November. Instead, some of the producers raise the offer price for export by US$10 - US$20 per ton by taking advantage of the increase in the electricity rate.

 

In Japan, the purchase of spot goods continues to be low, but the price of 553 grade is up by around US$10 due to the increase in the cost price in September.

 

<> Ferro-silicon = As of October 10, the shipment of ferro-silicon from Tianjin is still stopped, and it is not yet in sight when the shipment will restart. There are many cases of using the port of Lianyungang to which the inland transportation charge is relatively cheap as a substitute port, where the handling quantity of ferro-silicon meant for destinations other than Japan and South Korea is increasing. 

 

In China, the price of the product with Si being 72% continued to decline because the major steel mills reduced the cost price. Albeit the distributed volume of the product with Si being 75% did not increase, its export FOB price dropped due to the distribution of the cheap products in the end of September.

 

The price of regularly-exported products in the Japanese domestic market is adjusted downward owing to a drop in FOB price as well as the price of product distributed in the market, and both offer and contract prices were down by US$25 - US$30 per ton from the end of September. 

 

The prices of products distributed in the market dropped due to the increase in the distributed volume of cheap products, and is down by US$30 - US$70 from the end of September.

 

On the other hand, both offer and contract prices for Russian products were down by US$10 from the end of September.