Nippon Denko Raises Ferromanganese Price by 60,000-70,000 Y/t

Nippon Denko agreed with the users in price hike of high carbon ferromanganese by 60,000-70,000 yen per tonne for April-June shipment compared with January-March. Nippon Denko reflects the upsurge of international ferromanganese price which reached US$ 3,000 (303,600 yen) per tonne in Europe due to higher manganese ore price or supply troubles of ferroalloy. Domestic ferromanganese price has soared by about 110,000 yen compared with the yearly average in 2007. Japanese steel industry would be suffered from cost up for major manganese ferroalloys by around 85 billion yen per year.The firm said Japanese spot price of high carbon ferromanganese would reach 285,000-295,000 yen per tonne for April-June, up by more than 70,000 yen from January-March. Silicon manganese price rose by over 70,000 yen per tonne, too. European high carbon ferromanganese price is surging to US$ 3,000 per tonne while Chinese silicon manganese price to over US$ 2,400 per tonne. Both prices are expected to rise more for July-September.Overseas manganese ore suppliers agreed with Japanese consumers to raise the price to FOB US$ 11.2 per tonne with 1% of manganese for shipment in fiscal 2008 started April, up by 4.1 times from fiscal 2007 to reflect tighter supply in the world. The price to China reached CIF US$ 14-15 per tonne for April-June shipment while spot price hits as high as US$ 17-18 per tonne.Ferroalloy market price is increasing due to production harrier. Electric power shortage cleared. But, with slower production by electric power shortage in South Africa or accident of major makers, the supply is decreasing in the world. Chinese ferromanganese makers are expected to reduce the output for environmental measure during Olympic period in Beijing. The supply is likely to keep shortage.