Chinese domestic prices of ferroalloys falling
The prices of Chinese ferroalloys were gradually increasing since the end of last year but now the prices of Chinese ferroalloys have finally slumped. In view of the fact that market price of manganese ore as raw material has been reduced approx by 60 - 65%, domestic prices of Chinese manganese ferroalloys are likely to fall by USD 50 per tonne during a period of last week to this week.
However, on the other hand, the Chinese Government had reduced temporarily electric power fee from December of 2008 but this arrangement will end by the March 15th of 2009. Therefore, the cost to production of silicon based ferroalloys, such as ferrosilicon, in China is likely to go up again. This temporary reduction of electric power fee arranged from December of 2008 is to cut by CNY0.08 per 1 KWH and, accordingly, it was informed that electric power fee has come down to CNY0.52 per 1 KWH on the average as a whole of China.
The key factor to drive export prices of Chinese ferroalloys is the large quantities of manganese and silicon ferroalloys stocked by Japanese distributors. As a result , the negotiations to export Chinese ferroalloys for Japan have come to a standstill and new contracts are not likely to conclude at present. Market prices of bulk ferroalloys are being sporadically offered from China but these prices are thought to have less offered from Chinese side are USD 1,350 to USD 1,400 for silico manganese, USD 1,100 to USD 1,150 for ferrosilicon and USD 2,300 to USD 2,350 for electrolytic manganese metal.31-3-2009
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