International market for Ferro Alloys was more or less
stable this month with trading volumes being low. Following is the area wise
highlights of the international market:
South Africa: Ferro
Chrome production of Merafe falls by 5% in Q3
Q3 Ferrochrome (FeCr) production of Merafe, the largest
producer of FeCr in the world was 5% lower than the 2011 which was due to
furnace refurbishment programmes being extended in response to soft market
conditions.
Whereas, the Ferrochrome production volumes in the nine
months of 2012 were 15% lower than the 2011 at 168.7 (kt) mainly due to power buy-back deals with Eskom, the
South African electricity supplier, to counter electricity shortages.
China: Domestic Ferro
Chrome prices remain steady
China's domestic high carbon Ferro Chrome (50% Cr) prices
were steady this week with thin volumes.
Market players attribute prolonged weak demand from
stainless steel mills in China to be the main reason for unchanged prices &
low volume.
In other news, International Ferro Metals Ltd, a major
producer for Ferro Chrome expects spot prices of Ferro Chrome in China to rise
by the year end on back of stimulus measures introduced by the new Govt. in
Bejing. But demand for Chrome ore is expected to remain relatively constant
because of impact of strikes in South Africa, which has the largest Chrome ore
reserves in the world.
Europe: European
benchmark prices for Ferro Chrome set lower for Q4
The European benchmark Ferro Chrome prices for Q4 has been
settled at $1.10 per pound after negotiations with major stainless steel
companies.
The benchmark price for Q4 is said to be lower than the Q3
prices of $1.25/pound.
The fall in prices is mainly due to softer demand in Europe
& slowing down of stainless steel market.
Japan: Demand for
Ferro alloys remain weak as steel mills cut output
Demand for spot Ferro Silicon & imported Silico
Manganese in Japan has slumped this month as domestic steel makers have cut
their capacity utilization rates.
“Japanese automakers have reduced their output by 10%
& Electric Arc Furnaces are also cutting their production levels. Purchase
volumes for Ferro alloys have dropped by nearly 30-40%”, said sources.
Offers from China & India for Silico Manganese are in a
wide range as those manufacturing normal output are cutting prices while those
cutting output are keeping prices high.
Silico Manganese (SiMn 65/15) was sold at $1070/MT CIF Japan
to be shipped in November.
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