Japan Manganese Ferroalloy Price Decreases to around 290,000 y/t in Jan-Mar

Japanese ferroalloy makers came to a conclusion of price negotiation for manganese ferroalloy largely with domestic steel makers in January-March shipping. The selling price of the ferroalloy by ferroalloy makers is seemed to decrease to around 290,000 yen per tonne by over 50,000 yen in January-March shipping from October-December 2008 when international price is downward trend due to slower world steel demand from the last half of 2008, according to Japanese ferroalloy maker or large dealer sources. Chinese ferroalloy makers’ purchase price for manganese ore in January-March shipping becomes a focus point of manganese ferroalloy price.

Silicon-manganese ferroalloy price of Japanese ferroalloy makers is likely to decrease to 200,000-210,000 yen per tonne by around 60,000 yen in January-March shipping from October-December shipping.

Chinese silicon-manganese export price decreased to US$ 1,200 per tonne from the peak price at US$ 2,500. Japanese large dealer source said Chinese ferroalloy makers are decreasing the operation rate to around 20% against the capacity. Chinese inventory adjustment for silicon-manganese is progressing and silicon-manganese market price is rebounding. In recently, Chinese export price by ferroalloy makers is increasing to around US$ 1,500 per tonne to Japan.

Manganese ore price rose to US$ 16 per tonne with 1% manganese for Chinese ferroalloy makers’ purchase price in October-December 2008, but spot price is decreasing to US$ 7-8 due to loosening of the supply and demand in the world. Import manganese ore at US$ 16 is equivalent to over US$ 1,600 for Chinese ferroalloy makers’ production cost if makers use 100% import ore. Manganese ore price dominate manganese ferroalloy market price.