Scrap supply not matching Italian steelmakers’ demand

London 13 January 2011 13:37

Tight ferrous scrap supply, and increased steel demand in Italy has seen prices rise sharply.

“Quantities [of scrap] delivered have been lower than the needs of mills,” a merchant said.

E8 new arisings were purchased at €390-410 ($512.4-538.7) per tonne delivered this week, increasing from the December average delivered price of €340 per tonne.

E40 shredded changed hands at €380-400 per tonne delivered, up from a December average delivered price of €340 per tonne.

E3 demolition material finally showed signs of catching up with higher grade prices, being bought at €360-390 per tonne delivered, up €60 from a cargo  bought at €330 per tonne delivered on December 24.

Foundries were quoted prices of €410-420 per tonne delivered for bundled E8 new production material this week.

In December, 90,000 tonnes of ferrous scrap was imported to Italian ports, although around 16,000 tonnes of this cargo was then shipped on to Turkey, where recyclers could receive higher prices for their material, the merchant said.

Italian steelmakers have returned to the market after the winter break and report stronger finished demand for long and flat products.

These factors have forced scrap prices up again, making January the fourth consecutive month of market strengthening.

Domestic traded prices have now broken the €400 per tonne delivered mark for two higher quality grades.

“Mills’ demand levels have remained stronger than scrap availability,” the merchant said. “Consequently the upward trend will drive the January market up.”

Copyright © Metal Bulletin Ltd. All rights reserved.

Tangshan steelmaking iron price breaking RMB3800/t mark

BEIJING (Asian Metal) 14 Jan 11 – Steel plants are eager to purchase raw material as it enters into mid-January. Pig iron market flunctuates in line with market conditions as prices of iron ore and coke keep rising these days and iron prices rise significantly. As for iron market in Tangshan, most steel plants raise pig iron price by RMB50-60/t this week to maintain normal production. Even so, the supply of the material keeps tight and some steel plants are likely to raise the purchasing price further.

A source from a Tangshan-based iron plant stated that iron prices increase this week as the supply keeps tight and buyers are eager to make purchases. Moreover, consumers come to accept the current high prices, so it is relatively easy to make deals. The plant is still supplying liquid iron to some regular customers this week and the rest of the material can be processed into iron lump. The current price of liquid iron is above RMB3,500/t whilst that of iron lump is above RMB3,700/t and the market is likely to keep strong before the Lunar New Year. 

A source from a Fengrun-based iron plant disclosed that the purchasing price of pig iron in Tangshan increases this week.Since the plant is still executing some previous orders, the purchasing price of pig iron keeps firm at RMB3,780/t and can not find materials below the price. The source added that the purchasing price for pig iron in Tangshan is running at a high level.It is reported that the mainstream price has broke RMB3,800/t mark with the maximum price at RMB3,850/t. Steel billet prices continue to rise in the recent two days, so he expected that pig iron prices will run at a high level before the Lunar New Year.

A source from a steel plant at Jingtang Port stated the plant’s purchasing price of pig iron is RMB3,800/t VAT included EX works, up by RMB50/t compared with that of last week and they will keep adjusting the price in accordance with delivery and consumption. Until now, downstream steel billet market keeps active, which is likely to bring up pig iron prices.

The supply of steelmaking iron keeps tight in Tangshan this week and prices of iron ore and coke keep firm, so some traders are optimistic with the market. Moreover, the supply of of high-quality steel scrap is extremely tight, which bring up steelmaking iron prices significantly. At the same time, steel plants’ inventory can maintain production for 6-7 days compared with 4-5 days at the beginning of month and they are still eager to stock up with the material with the price breaking RMB3800/t mark. It is expected that steelmaking iron price is still likely to rise slightly.

Spanish scrap market: steelmakers getting ready to take up defensive position

This week Spanish plants have started recovering after a holiday price boom in the world segment of steel scrap. While most European exporters of the material, having already sold most of January production before Christmas, left the market for holidays, US traders together with Turkish mills boosted prices by another $40/t.

EU exporters, who had the material at stock, have also rushed to offer it at new levels, which has led to a temporary market oversupply. In this situation, plants have found it reasonable to suspend purchases.

In particular, while Spanish mills were getting ready to make new deals at the beginning of this week, high volumes of scrap offered by European suppliers have allowed steelmakers to back up by mid-week, making exporters revise offers.

Meanwhile, market participants report that scrap collectors are ready to sell rather large volumes of OA structural material at EUR 390/t C&F Spain, which means about $504/t C&F at the exchange rate EUR 1 = $1.295. At the same time, offers of shredded scrap are limited and traders quote it at EUR 395/t ($510/t) C&F, while a week ago it was transacted at EUR 370/t ($493/t) C&F. Estimated prices for HMS 1&2 (80:20) (E3) have also gone up and settled at about EUR 370/t ($478/t) C&F, suppliers say.

Further market developments will mainly depend on Turkish steelmakers, who are also preparing to suspend purchases after the active holiday period. If they stay calm, Spanish producers will probably follow the same strategy, hoping suppliers will cut prices. However, in any case the need to attract new quantities of the material will force mills to start negotiations by late January.

Notably, while export markets are calm, Spanish plants are purchasing scrap in the domestic market actively. Producers, having brought buying prices for local scrap to import levels, have provoked rush shipments from domestic traders. Spanish sellers are afraid of a price trend reversal and thus de-stock urgently, turning scrap into money.

Currently bids for local scrap are as follows: HMS 1&2 (80:20) (E3) – EUR 360-365/t ($466-472/t) delivered against EUR 340/t delivered last week. Prices for shredded scrap (E40) have grown to EUR 380-385/t ($479-486) delivered, by EUR 20/t up from last-week levels.
by Metal Expert LLC

USA: exporters expect to sell remaining scrap at higher prices

Export activity of US scrap collectors is at its height now. Suppliers intend to take full advantage from buying activity in foreign markets and sell leftover of their ferrous scrap with maximum profit.

As a result, HMS 1&2 (80:20) is available from ports of US east coast at $475-480/t FOB against $445-450/t FOB in late December. Shredded scrap is currently quoted at $480-485/t FOB, $30/t up from the end of December.

Quotations of higher-quality P&S material have also reached new highs – $485-490/t FOB east coast, $25/t up in two weeks. HMS 1&2 (70:30), which is least in demand, is offered at $470-475/t FOB against $440-445/t FOB in late December.

US traders believe that export quotations of scrap will keep growing until late January, as new contracts with foreign buyers are expected.

Demand for the material is high also in the US domestic market. This week steelmakers have raised their purchase prices by $60-70/t, striving to buy local scrap, while its supply is falling rapidly. Some producers need the material to fulfil orders for finished products so much that they are forced to import it from Europe.

Besides, the market fever gets stronger because steelmakers, who regularly use pig iron for production, now have switched to scrap, as with current quotations for finished products purchasing the former has become no longer feasible after its prices added $60/t.

Average market price for HMS 1 has added $60/t in two weeks, reaching $435-440/t delivered in mid-January. HMS 2 is sold at $370-375/t delivered now, against $310-315/t delivered last week.

Quotations of local scrap have also resumed growing in the US east coast. Prices for HMS 1 have leaped by $80/t on average in a week, to $430-435/t delivered, and those for HMS 2 have gained $75/t, reaching $320-325/t delivered.

Domestic prices for ferrous scrap are expected to keep growing in the USA not only in January, but in February too. US steelmakers will continue to raise purchases in view of a gradual recovery of buying activity in the finished products segment. Steelmaking capacity utilization in the US is forecast to grow from current 70-71% to 73% in February.

by Metal Expert LLC

CIS scrap exports: opportunity only knocks once

In this week Russian and Ukrainian exporters of ferrous scrap have witnessed a decline in business activity in their key sales market. Having left the market for New Year holidays, most of them failed to catch the best moment to sign deals with Turkish buyers. While Russian and Ukrainian exporters, like most their European counterparts, were out of the market for holidays believing that the market will be calm during this period, US exporters successfully implemented a substantial lift ($40/t up) in quotations in Turkey and started 2011 with new prices.

Such drastic changes in market conditions have confused traders, who have expected persistently firm demand in mid-January. However, CIS suppliers have failed to make a coordinated effort to hit the new price levels after returning to the market, thus causing oversupply. This has allowed Turkish steelmakers to slow their purchases down, expecting CIS exporters to reduce prices and at the same time resuming trading with European exporters.

Most of Russian exporters are ready to reduce their prices. For example, while last week some suppliers from Rostov-on-Don, who returned to the market earlier than others, managed to sign a number of contracts at $515/t C&F ($484/t FOB excluding freight rate of about $31/t), now deals are made mostly at $500-505/t C&F ($470-475/t). However, even in view of reductions, the current offers are still $30/t above the level of late December and completely cover the scrap collectors' expenses.

A3 scrap is quoted at $332/t CPT cash payment and $342/t CPT non-cash payment in Russian ports of Azov and Black Sea, just $12/t up in two weeks. Taking into account export duty (about $52/t) and port expenses, exporters need to sell the material at $480/t C&F ($445/t FOB) to have any profit.

In turn, Ukrainian scrap has been changing hands at $500/t C&F at most. After selling most of January offering back in late December at $450-460/t C&F ($420-430/t FOB), only a number of companies managed to hit the $480/t C&F level ($450/t FOB) by the end of the year. Currently, they have focused on fulfilling the contracts they signed. Nevertheless, the scrap collectors remain optimistic and expect to approach the $500/t C&F ($470/t FOB) mark by the end of January.

Prices in Ukrainian ports are also growing. In particular, A3 scrap is priced at $344/t CPT in Berdyansk, Ilyichevsk and Kherson now, against $325/t CPT in late December. Maximum price for local A3 scrap is quoted in Odessa – $349/t CPT. Exporters from Zaporizhya and Dnipropetrovsk are forced to sell in the domestic market due to ending of river navigation. Considering current purchase prices from local mills, A3 is bought at $300-305/t CPT at these ports.

As for Russian ports of the Baltic Sea, in spite of no new deals, estimated prices for scrap from St.-Petersburg have also increased on the back of higher quotations of European and US scrap. Metal Expert estimates, traders are ready to ship A3 scrap at least at $505-510/t C&F ($450-455/t FOB, excluding January freight rates) now.

In spite of slower business activity this week, CIS suppliers still can expect the quotations to return to their maximums. And though prices for import scrap may cease rising in Turkey by February already, local steelmakers will have to resume purchases of the material from abroad, as their stocks are not sufficient to sustain production in February amid rather favourable conditions in the steel product market.

by Metal Expert LLC

Japan: scrap export prices exceed domestic ones

Export trade is becoming ever more attractive to Japanese scrap collectors. In mid-January importers’ interest in additional volumes of the material has risen, which has been reflected in higher purchase prices. South Korean holding Hyundai Steel is already bidding JPY 38,500/t FOB for Japanese HMS 2, which means $464/t FOB at the exchange rate $1 = JPY 83.005. A week earlier the material was priced at JPY 36,000/t ($434/t) FOB.

Notably, for the first time in more than three months foreign consumers’ bids for Japanese material exceed buying prices of local steelmakers. This can be attributed to importers’ urgent need of steel scrap for their stable operation.

At the same time, domestic prices have been unchanged from a month ago. In particular, Tokyo Steel has not revised its bids since December 21.

The company’s subsidiaries Okayama and Kyushu are now purchasing local HMS 2 at JPY 37,000/t ($446/t) for seaborne and overland arrivals (all prices are given exclusive of 5% VAT). Takamatsu is bidding at JPY 35,000/t ($422/t), any type of delivery. Tahara is ready to pay JPY 36,500/t ($440/t) for HMS 2, seaborne arrivals and JPY 37,000/t ($446/t) for overland arrivals. Utsunomiyа is purchasing similar material at higher price – JPY 37,500/t ($452/t) for overland arrivals.

Market commentators believe Japanese domestic quotations will move closer to export ones soon. Export offers will continue rising as well since taking into account current consumer activity in South Korea, the suppliers will be able to implement another price increase easily.
by Metal Expert LLC

EU pig iron market: fewer reasons to buy pig iron

Suppliers in the EU pig iron market have announced new prices at which they are ready to ship the material. However, consumers are wary to accept them yet, waiting for the situation with demand for finished products to become clear.

Market participants report Russian producers are offering February melting at $530-540/t FOB ports of Black and Baltic Sea ($555-565/t C&F). The latest contracts have been reportedly signed at $495-500/t FOB ($520-525/t C&F ports of Spain) for late-January – early-February output. Notably, the current bids are reaching the April peak levels – $565/t C&F. Pig iron of Ukrainian origin is priced at $500/t FOB Black Sea, which means $525/t C&F ports of Italy.

Exporters mainly referred to steadily soaring scrap quotations when revised prices. In particular, shredded scrap is available in Italy at $505/t delivered. Taking into account a big price gap between the two kinds of material, pig iron suppliers hope to add $30-40/t to the late-December transaction level.

However, pig iron suppliers have one major disadvantage before scrap sellers – delivery time. A lack of available pig iron and long time of delivery were producers' main advantages in December. However, now the situation is different. Steelmakers and most traders do not want to run risks buying the material for long perspective, since delivery is possible in late February-March. It is yet doubtful whether new prices for finished products, reflecting an upturn in raw materials sector, will be set by then. It is only clear that quotations of finished products are likely to slide in the future.

The time when the decrease will be implemented is more important: the Spaniards are getting prepared for February, the Italians are more optimistic, thinking it will be in March. Some traders believe prices will fall by $50-60/t.

As a result, steelmakers are in no hurry to purchase pig iron. Moreover, their stocks are sufficient so far.
by Metal Expert LLC

Heibei Shougang Baoye Tongbao Coking: coke price rises with increase expectation before Spring Festi

BEIJING(Asian Metal) 14 Jan 11- Hebei Shougang Baoye Tongbao Coking coke price increases and that of metallurgical cokeII is RMB1,900/t Ex works. 

An official in this company revealed that the coke price increased and that of metallurgical cokeII was RMB1,900/t, a higher price due to the high quality closing to pseudo-first-order. The transactions are good and there is basic no inventory in company. It is predicted that the price would increase further around 15th, at least by RMB50/t. 

This official stated that the price increase was mainly caused by high cost. The increase of coking coal price is the major impetus of coke pirce increase, in addition with the Austrial flood, therefore, most traders anticipated that the international coking coal price would increase significantly, intensifying the upward trend of coke price before Spring Festival. The coke enterprises anticipated the potential of higher movements on price before Spring Festival. 

According to the analysts of Asian Metal, the coking coal price increases as anticipation and the demand was flourish, coupled with the high demand expectation in future. Recently, the prices of steel and coking coal increase further, especially the alternative rising on coking coal price in various regions, in addition with the rainstorm in Queensland in Austrilia. The international coking coal price rises significantly and the price differcences between domestic and international market are great. It is predicted that the domestic coking coal price would keep high. The series of factors will be the base points of price regulation in future market. 

Tangshan Shougang Baoye Iron and Steel is the subsidiary of Shougang Group and was founded in 18th October, taking an area of over 8,000 acres with the preliminary designed scale of six million tons annual output. The first-stage construction was launched at the end of September in 2009 and the second-stage was planned to be launched at the end of March in 2010. In the spirit of “high starting point, high standard, high requestment” and “first-rate technique, high-quality production, high benefit and good environment”, this company shows traditional strengths, first-class level and broad feelings of parent company. The emphasis on people oriented and construction of the harmonious company become the basic of structural adjustment and reform and development.

Shandong ductile cast iron prices up with reasonable demand

BEIJING (Asian Metal) 13 Jan 11 – Reasonable deals of ductile cast iron are concluded this week and some iron plants are even out of stock as the production cost continues to rise. Therefore, the mainstream iron plants begin to raise the price by RMB30-50/t while end-users accept the price growth and make normal purchases at the moment. 

A source from a famous Weihai-based iron plant stated that the production cost remains high due to the rising iron ore and coke prices as the plant receives reasonable orders this week with some products even out of stock. Therefore, the plant raises the quotation for high-quality ductile cast iron Q10 to RMB4,200/t VAT included EX works, up by RMB50/t compared with that of last week with the minimum favorable price of RMB4,180/t to some regular customers. The plant is mianly supplying the material to buyers in Jiaodong Peninsula. 

A source from a Jinan-based iron plant disclosed that the plant’s quotation for high-quality ductile cast iron Q10 this week is RMB4,120/t with cash payment, up by RMB30/t compared with that of last week. The plant’s quotation for high-quality ductile cast iron Q12 is RMB4,150/t on the same basis and an additional RMB20/t should be paid for acceptance as a result of the increasing production cost. The plant purchases iron ore fines of high grade at above RMB1,500/t whilst purchasing secondary metallurgical coke at above RMB2,000/t and it will take some time before buyers can accept the price growth.

A source from a Linyi-based iron plant stated that the purchasing price of imported material increased by USD4/t the day before yesterday while their quotation for cast iron and ductile cast iron remains firm at RMB4,000/t at the moment. They are considering raising pig iron price again these days. Moreover, the plant plans to move out a batch of steelmaking iron before the lunar new year and customers who need the material can come and negotiate. 

It is confirmed that large producers in Shandong will raise their quotation for iron ore by RMB35/t, which will surely cut the profits of iron plants. As a result of the price growth, the quotation of Jinling and Luzhong will be RMB1,480/t and RMB1,460-1,480/t respectively while that of Hualian will be RMB1,440-1,460/t VAT included EX works. And for pig iron market in Shandong, the price is still likely to rise slightly before the lunar new year while the increase rate largely depends on whether customers can accept it

US ferrosilicon prices soft but material availability tightening

PITTSBURGH (Asian Metal) 14 Jan 11 – The US ferrosilicon market kept unchanged through the week, but the majority of active traders are speculating a price increase as steel mill inventories dwindle and capacity utilization rates pick back up.

Prices keep at USD1.04-1.06/lb at present, which has held for the past week approximately. The market experienced a slight drop of USD0.01/lb at the start of 2011.

The export market in China has experienced a steady decrease over the past 3-4 weeks as well as US distributors report receiving offers from Chinese suppliers at around USD1,500/t (USD0.90/lb) FOB China since late December. With price margins for Chinese material relatively slim at present, it is unlikely that any new deals with China will be booked until the market starts exhibiting positive price pressure again.

One large US-based ferrosilicon trader, who cited pricing at USD1.05-1.06/lb, had only seen light inquiries and truckload sales since the start of 2011.

“The market overall is very quiet right now,” the source said. “There are some inquiries here and there but activity is relatively slow compared to in Q3 and Q4 2010.”

Another US-based supplier brought up the issue of rising capacity utilization rates. According to the source, the current supply situation could not be sustained at 80% utilization rates or above.

“Capacity utilization rates are back up to 71%, but there isn’t enough [ferrosilicon] in the US to satisfy demand if rates hit 80%.If utilization rates keep increasing, there will be a big shortage of material,” the source said.

The trader, who last booked a small three truckload sale at USD1.05/lb earlier this week, indicated the current market at USD1.04-1.06/lb.

Supply of green silicon carbide lumps keeps tight in China

BEIJING (Asian Metal) 14 Jan 11 – Demand from downstream consumers for green silicon carbide is still strong, and the supply for green silicon carbide lumps keeps tight, for difficult transportation in Xinjiang and production halt of green silicon carbide in Sichuan in light of the dry season. 

A Qinghai-based smelter reported that demand from downstream consumers is very strong and all the materials in January have been booked by long-term customers. The source offers green silicon carbide lumps at RMB10,100/t (USD1,525/t) ex works and reveals that all the orders accepted in this month are concluded at this price level. Excepting for strong demand from downstream consumers, the short supply of green silicon carbide lumps can be attributed to the difficult transportation in Xinjiang and production halt of green silicon carbide in Sichuan. 

With an output of 4,300tpm of green silicon carbide lumps, the source reveals that the current output cannot meet the demand from downstream consumers, though all his four smelting lines of silicon carbide are running at their full capacities.

Another Qinghai-based smelter confirms the tight supply of green silicon carbide lumps and offers the materials at RMB10,000/t (USD1,510/t) ex works, revealing that he only has small quantity of green silion carbide for the moment. "We received more enquiries and orders from downstream consumers, for the delivery of cargoes from Xinjiang is very difficult and all smelting lines of green silicon carbide stopped late December in line with the dry season," explained the source.

Running at their full capacities of 4,100tpm of green silicon carbide lumps, the source reveals that he has four smelting lines with 12,500kva transform voltage for each line. "All the four smelting lines of green silicon carbide are running at their full capacities," emphasized the source. 

Chinese ferrosilicon prices retreat further

BEIJING (Asian Metal) 14 Jan 11- According to the active participants, Chinese ferrosilicon market is still in the downward trend with the mainstream prices of ferrosilicon 75% in the range of RMB6,900-7,000/t ex works presently.

An Inner Mongolia-based producer with current output of 3,500tpm of ferrosilicon 75% disclosed that they quoted RMB7,000/t ex works on Thursday, a decrease of RMB100/t against that of last week, and they concluded a deal of 500t at RMB6,900/t ex works on Wednesday. “We do not have any stocks for the moment, and we have almost booked out all of our output in January,” remarked the source.

The source expressed that as the luner New Year is approaching, they just want to sell all the material be giving a discount. 

A Shanxi-based consumer with a monthly consumption of 1,500tpm of ferrosilicon 75% confirmed that they got offers from the suppliers at RMB6,900-7,000/t ex works this week, down from RMB7,000-7,100/t early last week, and they just booked 600t of the material from a Ningxia supplier at RMB6,900/t ex works on Thursday. The source expressed that most of the producers have adjusted their quotations downward to RMB6,900-7,000/t ex works, and they just want to contract all their material before the New Year holiday.

“The New Year is drawing close, it is expected that there will be more buying activities in the next few days as the consumers who want to replenish the material before luner New Year must give extra days for the transporation,” said the source

Iron Ore-Prices race higher as Indian state considers ban

SINGAPORE/SHANGHAI, Jan 12 (Reuters) - Offers to sell Indian iron ore in China rose half a percent on Wednesday, as key indexes scaled fresh eight-month peaks, on supply worries after India's top producer said it was considering banning exports of the steelmaking ingredient.

Orissa's state government was looking at submitting a proposal to the federal government to ban iron ore exports to meet demand of the domestic steel industry.

India is the world's third-largest iron ore supplier and exports about half of its annual output of around 200 million tonnes, mostly to China, the world's top buyer.

Supplies from India had already been tight after the southern state of Karnataka banned exports from last July and a similar move by Orissa could drive prices even higher as it forces top buyer China to rely more on supplies from Australia and Brazil, the two biggest exporters.

Bans in both Karnataka and Orissa would "dramatically reduce spot iron ore supply and boost prices", Commonwealth Bank of Australia said in a note.  

"Chinese steel mills will definitely buy more from Australia and Brazil if India continues reducing exports, but other smaller suppliers like Iran, Indonesia and Venezuela will also take advantage to boost their presence in China," said Hu Kai, an iron ore analyst with Umetal.com.

Australia, Brazil and India together accounted for 80 percent of Chinese iron ore imports in January to November, with Indian exports at about 16 percent, based on the latest available Chinese government data.

The next three biggest iron ore suppliers to China are South Africa, Iran and Ukraine, whose combined exports accounted for 9 percent of the total.

Tight Indian supplies boosted offers for Indian ore with 63.5 percent iron content to $181-$184 a tonne, including freight, on Wednesday from $180-$183 the previous day, said Chinese consultancy Mysteel.

Firm Chinese buying ahead of the Lunar New Year in early February also buoyed prices, but gains could be capped as smaller steel mills normally maintain inventories of just up to one month.

"Steel mills have prepared for price increases as the Chinese New Year approaches, and they are buying more this week," said an iron ore trader in Beijing.

BAN UNLIKELY

The key iron ore indexes, which track spot transactions in China, rose to their highest levels since May at the close of trade on Tuesday.

The Platts 62 percent iron ore index IODBZ00-PLT ticked up 25 cents to $175.75 a tonne on Tuesday, and The Steel Index 62 percent benchmark .IO62-CNI=SI rose $1.20 to $174.60.  

Metal Bulletin's 62 percent gauge .IO62-CNO=MB gained 68 cents to $172.34.

Indian traders said it was unlikely for the Orissa state government to immediately ban iron ore exports, particularly fines, or ores less than six millimetres in diameter used to make pellets, because most domestic plants use lumps.

"There are very few plants making pellets in India and while slowly pellet plants are being built, it will take two to three years to set up and start production," said Dhruv Goel, managing partner at iron ore trader Steelmint in Orissa.

"So right now, there's huge production of fines and demand is very limited. If they ban exports of these fines, they have to dump it somewhere and it will cost them.

"Besides, the government is getting huge revenue from the export duty so it's very unlikely for an immediate ban to be implemented," said Goel.

In the forward swaps market, most contracts slipped on Tuesday after recent gains.

The February contract , cleared by the Singapore Exchange, eased 42 cents to $170.58 a tonne, and March was off 17 cents at $169.00. (Editing by Himani Sarkar)

Chinese manganese alloy and ore market report Dec 2010

The manganese alloys market remains slow and weak, and the demand decreased further relatively with price sliding to a low level from steel mills.
Furthermore, the oversupply of spot materials exacerbated the price fall. The running costs, such as coke price, power charge and transport fee etc., are increasingly going up, which gives a heavy burden for operation.
The imported manganese ore market keeps stable and weak with few deals concluded, and the stocks in ports have piled up to a high level currently.
With the approaching of Chinese New Year, some traders choose to sell out the materials in stock at a lower price for money withdrawing. Fortunately, these activities have not given a big impact on the market yet. On the international market, the manganese alloys market remains slow but the prices have increased slightly.


13 Jan ferromanganese export price:
High carbon ferromanganese (78%min); 1,720-1,750 USD/t, fob

CIS pig iron producers raise offers $40 per tonne after scrap surge

London 12 January 2011 10:05

Producers of low and high manganese pig iron in Russia and Ukraine increased their fob offers after scrap prices strengthened rapidly since late-December.

Latest offer prices for February delivery were $540 per tonne fob from Black Sea and Baltic Sea ports from Russian producers of low manganese pig iron, this is up from $500 per tonne fob towards the end of December.

Major producers of high manganese pig iron in Ukraine upped their offer price to $520 per tonne fob, also an increase of $40 from $480 per tonne fob in late December.

A Turkish mill also bought a 10,000 tonne-cargo of high manganese material at $530 cfr Marmara last week.

The market has strengthened since though.

An Italian mill was offered a high manganese cargo from Ukraine at $545 cfr on Tuesday.

“They are calling it a speculative bubble, but stocks of pig iron are low across Europe,” a trader said.

With demand strong among flat product producers in Europe, and strengthening to scrap prices, pig iron producers see no reason for the market to slow soon, market participants said. 

Ferrous scrap offers into SE Asia jump

Ferrous scrap offers into Southeast Asia continued their breathtaking rise this week, hitting $500 per tonne c.f.r. for the first time since last April. Offers for the 80/20 mix of No. 1 and No. 2 heavy melting steel scrap in containers from Europe and the United States moved up to $490 to $500 per tonne c.f.r. from $470 to $490 previously, according to trading sources in the region.

"Like many predicted last week, it was easy to hit $500 per tonne c.f.r. It is still freezing in the U.S. and Europe and this week it is flooding in Australia. All this caused scrap prices to go up," a mill official in Malaysia told AMM sister publication Metal Bulletin.

Traders and mills resumed buying this week, pushing booking prices to $450 to $490 per tonne c.f.r., an eight-month high, from $410 to $420 before Christmas. "The mills have deliberated over the high prices and come to the conclusion that they seem to be here to stay. We have no choice and have started booking again," a mill official in Indonesia said.

Prices are highest in Malaysia and Vietnam, where buyers snapped up offers at $480 to $490 per tonne c.f.r. "Demand in Vietnam is actually not very high, but some mills prefer to buy now before prices go up again," a mill official in Vietnam said.

In the breakbulk market, offers have remained at $520 per tonne c.f.r. this week, with no bookings confirmed. "Stocks at the big mills (that buy scrap in bulk) are still okay. I think the mills are trying to postpone their purchases until after the Chinese New Year. They do not want to stock scrap throughout the holiday," a trader in Ho Chi Minh, Vietnam, said.

The Chinese New Year starts Feb. 3. Sources expect scrap prices to remain at the current level or rise further in the runup to the Chinese New Year holiday. "Iron ore prices have gone up, and all the supply problems mean prices can still go up. Scrap prices will stabilize only (as late as) in April," said Ng Sem Guan, a steel analyst at OSK Research Sdn Bhd in Kuala Lumpur, Malaysia.

Ukrainian ferrosilicon market sluggish

BEIJING (Asian Metal) 11 Jan 11 – Ukrainian ferrosilicon market keeps sluggish as some participants are still on vacation and sources expect the buying activity to remain slow in the short term. The current price of ferrosilicon 65%min in spot market is UAH16,800-17,000/t (USD2,100-2,125/t), unchanged from last week. 

An Ukraine-based trader reported that offers from suppliers for ferrosilicon 65%min firm at UAH17,000/t (USD2,125/t), but the trading is thin as most consumers are watching the market. “We received few enquiries from consumers over the past month and the demand keeps sluggish,” stated the source.

The source disclosed that there is a 20% of tax refund for ferrosilicon export in Ukraine, however, they received few enquiries from foreign customers and they did not quote for the material as well over the past month. He thinks that some suppliers will lower their quotations to attract buyers in the short term as the demand keeps slow. 

Another Ukraine-based trader stated that they received few enquiries and concluded no new deals over the past month, and the trading is slim on the market. “Some traders still hold abundant inventory at the moment, but there are few enquiries from customers, so I think the price will slide in the coming week,” stated the source. He thinks that the current price is UAH16,800-17,000/t (USD2,100-2,125/t), but it will drop to around UAH16,500/t (USD2,062/t) in the short term

Chinese ferrosilicon export prices in a wide range

BEIJING (Asian Metal) 7 Jan 11- As the major consumers from Japan and South Korea have already contracted their materials in the next two or three months, Chinese ferrosilicon export market see little movement with thin trading on the spot market, and prices for ferrosilicon 75% are in a wide range of USD1,520-1,590/t FOB China presently. 

An Inner Mongolia-based producer with a production capacity of 3,000tpm of ferrosilicon 75% exposed that they just sealed a deal with an Asian buyer at USD1,590/t FOB China early this week, and they would insist on their current offer in the near term. “Although some big producers can offer more aggressive prices, we will stabilize our offers at this level subject to high production cost,” said the source.

“We actually do not have many stocks, so we will maintain our offers and watch the market,” added the source.

Another Inner Mongolia-based producer with an output of 10,000tpm of ferrosilicom 75% disclosed that they offered the material at USD1,520-1,530/t FOB China on Thursday, down by USD20/t compared with that of last week, and they concluded some small deals with some Asian buyers. The source expressed that the price is transparent now, so it is meaningless to offer high.

“As we have almost booked out our material, so we will take a wait-and-see attitude towards the future market,” said the source.


FeSi Prices in FOB China basis

City	Spec.	Price	Up/Down	Unit
Qinghai	75%min	1,540-1,560	-20	USD/t
Gansu	75%min	1,540-1,560	-20	USD/t
Ningxia	75%min	1,540-1,560	-20	USD/t
Ningxia	75%min, Al 0.5%	1,655-1,675	-20	USD/t
Ningxia	75%min, Al 0.1%	1,715-1,725	-20	USD/t
Inner Mongolia	75%min	1,540-1,550	-20	USD/t
Shaanxi	75%min	1,540-1,560	-20	USD/t
Yunnan	75%min	1,560-1,580	-20	USD/t