Japan Manganese Ferroalloy Price May Sharply Rise

Japanese manganese ferroalloy market price is expected to largely rise. Manganese ore spot price is increasing by over 3 times for the shipment in January-March compared with Japanese annual contract price. Chinese alloy market price was about US$ 1,500 per tonne but is expected to rise by US$ 100-200 per tonne. Japanese steel industry expresses concerns that manganese alloy price would rise to max US$ 2,500 in 2008.Japanese steel industry source said manganese ore bound for China increased to US$ 10 per percent of manganese unit by US$ 2 for the shipping in January-March 2008 compared with October-December 2007. The price was higher than Japanese annual contract price at US$ 2.7. The supply and demand became tight when Chinese demand increased and CVRD, Brazilian major iron ore supplier, reduced manganese iron ore output by 27% or 450,000 tonnes in January-September 2007 compared with the same period of last year.Japanese steel maker and large dealer source said Chinese suppliers for Silicon-manganese or manganese ferroalloy don’t present the selling price under the expectation for price rise. Japanese steel industry prospects Chinese suppliers would increase offer price to US$ 1,600-1,700 per tonne. Japanese users such as electric furnace maker will increase the inventory of silicon-manganese or manganese ferroalloy.Manganese ferroalloy price is expected to keep rising tone due to higher manganese ore price, the expansion of the demand for Chinese steel industry or higher price of electric power. Major integrated steel maker source said Japanese major dealer forecasts manganese ferroalloy price would rise to max CIF US$ 2,500 per tonne. Other integrated steel maker source said annual contract price of manganese ore for the shipping in fiscal 2008 would be made impact by spot price. Major dealer source said the annual contract price would increase over US$ 6 per tonne.Japanese integrated steel makers anticipates to be pressed cost up by higher manganese price in fiscal 2008 following higher iron ore and coal price.