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Indian silicomanganese shipment price to Japan declines

Time:[4/2/2012]   Hits:2576
TEX reported that prices of Indian silicomanganese for shipments to Japan declined to USD 1,250 to USD 1,260 per tonne CIF, down by some USD 50 per tonne compared to those of last week. This is mainly because the Indian sellers, hinted by the signs that buying interests in Japan were weakening, adjusted their selling attitude to meet the changes in the market.

In other words, the fact that the price, in Yen, agreed between the importers distributors and the Japanese EF mills for delivery during April to June 2012 quarter did not rise so much as the distributors desired, to the level of over JPY 30,000 per tonne delivered to the plant, discouraged the ambition of the Indians to raise the prices even higher.

The prices of silicomanganese agreed in Japan were mostly in the range of JPY 115,000 to JPY 117,000 per tonne (or even at JPY 120,000 per tonne) delivered to the plant. These numbers clearly indicate that the market no longer allow the Japanese buyers to continue buying at USD 1,250 to USD 1,300 per tonne CIF, as the agreed domestic prices were almost equivalent to USD 1,200 per tonne CIF or less upon import. For reference the prices of ferrosilicon agreed with the EF mills for the quarter were JPY 125,000 to JPY 128,000 per tonne delivered.

In the spot market, the prices for deliveries during April are reportedly more or less JPY 120,000 per tonne for silicomanganese and JPY 125,000 per tonne for ferrosilicon. The demand for spot silicomanganese is modestly firm.

Compared with January to March 2012 prices, the agreed April to June 2012 prices of silicomanganese were fairly up from JPY 93,000 to JPY 98,000 per tonne, by about JPY 20,000 per tonne, because of the increase in costs, i.e. higher offered prices in USD together with the weakened Yen per USD exchange rate.

Ferrosilicon price in USD did not change much but the weaker Yen per USD rate increased the costs by at least JPY 5,000 per tonne. However the currency factor does not seem to have been reflected to the April to June 2012 quarter price that was almost unchanged from that for the January to March 2012 quarter. There seem some hidden reasons for this. Especially something that explains reluctance of trading firms in aggressively selling ferrosilicon.