Silicon Metal = The market price in China hit the bottom after dropping by CNY50 per ton after the turn of the year, rebounded by the same amount and now stabilized while remaining flat. The spot goods are a bit scarce in the market, but there is no definite increase in the demand and the contract at a high price is few. Besides, some market watchers have an anticipation of a price fall. Against a background of Chinese New Year holidays (18th to 24th of February) being near at hand and the fluctuations in the rate of foreign exchange becoming wide, both seller and buyers have been careful at the time of negotiation for export.

In Japan, the customers' psychological state has inclined to buy at a cheap price because of such weak demand as the selling at a cheap price taking place sporadically in the Japanese domestic market, no shortage in the customers' in-hand stock and no big consumption being expected during the period from January to March. For that reason, the price that can get a contract has been pushed down from the level in the end of the year, and dropped by around US$70 per ton.

 Ferro-silicon = The market in China shows a downward trend after the turn of the year as well, and the price was down by CNY150 per ton from the end of December. This is because, in addition to the current demand and supply balance continuing to be in a state of excess supply, Chinese steel mills strengthened a price downward pressure owing to the prolonged doldrums of the steel product price and the anticipation of a production curtailment due to removal of the refund of value-added tax for boron steel. The producers are resisting a price cut for the reason of being below the break-even point, but the buyers think there is still a room to the lower limit and the market will drop down further.

The contract price meant for Japan was down by US$20 - US$30 per ton from the end of December. Major producers show reluctance in lowering the price, but shippers and users continue to prefer to buy a cheap product and some trading firms are energetically importing cheap products shipped by small- and medium-sized producers, which leads to lowering the market price.

The price of products distributed in the Japanese domestic market dropped by US$10-US$20 from the end of December because the price dropped in the Chinese domestic market.

Russian products are mainly based on a long-term contract, and the trading in the spot market continues to be thin. Following the price drop of other sources, both offer and contract prices are down by US$10-US$20 from the end of December.

Silico Manganese = Although the stoppage of operation by producers was expanded further in India, the demand itself was weak and the influence from decreased supply is weak. Because of downward pressure on prices such as low buying motivation of the overseas customers and slumping prices of steel products, the market was down by US$10 per ton from the end of December.

In the Chinese domestic market, major steel mills lowered its purchase price by CNY150 - CNY200 per ton from the prior month which resulted in increased downward pressure in the market. The offer price meant for Japan was down by US$20 from the end of December, but there seem to be no contract specifically.
 

• [Editor:Sophie]