Japan High Carbon FeMn Drops by Max 60,000 Y/T for Apr-Jun

Japanese ferroalloy makers are agreeing with steel makers to slash manganese ferroalloys price for April-June shipment. The high carbon ferromanganese price seemed to decrease by 50,000-60,000 yen to 230,000-240,000 yen per tonne for April-June shipment from January-March, according to a market source. The price declined by 40% from the peak of 400,000 yen per tonne for July-September 2008. The domestic price declines 3 quarters in a row while lower international price would decrease the domestic price for July-September shipment.

The domestic silicomanganese price for April-June apparently declined by 20,000 yen to 150,000-160,000 yen per tonne compared with January-March, which is equivalent to the half of 310,000 yen of the peak for July-September.

Manganese ferroalloys price increased to historical high in 2008 such as US$ 3,000 per tonne for high carbon ferromanganese and $ 2,500 per tonne for silicomanganese. However, the price plunged under the economy recession and significant raw steel output reduction. Silicomanganese price became $ 1,200 per tonne at the end of 2008.

Chinese silicomanganese export price recovered to $ 1,500 per tonne when the Chinese crude steel output increased. But current price decreased again to $1,100 per tonne when the manganese ore price dropped significantly. High carbon ferromanganese export price, which was relatively high, decreased to about $ 1,300 per tonne.

Operation rate of Chinese ferroalloy makers seemed to be 20-30%. On the other hand, Japanese electric steels keep the procurement at low level. Ferroalloy market price is unlikely to increase.