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Indian silicomanganese import price rebound affect Japanese market

Steel News - Published on Mon, 30 Jan 2012

TEX reported that the export price of Indian silicomanganese bottomed out earlier this month, and the price of the alloy purchased by Japanese EF steel mills became a little shaky. Market is concerned about whether the price in the contracts for February 2012 deliveries will be affected and, if so, to what extent. The price for January 2012 deliveries was below JPY 90,000 per tonne at JPY 89,000 per tonne, delivered to the plant, while the prices, on a quarterly basis, for the deliveries during the first quarter (January to March) of 2012, were in a range of JPY 92,000 to JPY 95,000 per tonne delivered.

Some of the mills already presented a bid of JPY 85,000 per tonne, apparently in order to take advantage of the past weak trend in price, but it is uncertain whether the sellers are ready to conclude at the level. Rather, it is more likely that the sellers will decline deals in the end at such a low level, due to the recent turnaround of the price of the imported silicomanganese of Indian origin.

According to a Japanese trading house, the Indian producers have started mulling to regulate exports of silicon manganese by setting up a minimum price for export. This move has been somewhat reflected to the recent offers.

As the Chinese silicomanganese was made hopelessly uncompetitive under the high export tax system, India became the top supplier of the alloy for Japan. However, the offer prices for the Indian material competed with each other to continuously slide since autumn of 2011. The abundant offers at comparatively lower prices were partly because of the weak Rupee, and at the same time the Indian exporters were in a sense desperate and bearish because they had to be faced with a difficulty in exports to Europe, their traditional market due to the much weaker Euro and demand.

Current offers are at USD 1,100 to USD 1,120 per tonne, up by USD 150 per tonne or so from the prices in some actual deals done in December 2011 at USD 950 to USD 980 per tonne CIF, which was the bottom.

(Sourced from TEX Report Limited)

Posted By : admin on Mon, 30 Jan 2012
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