Manganese ore and alloy prices increased over the past month due to speculative demand in China driving up domestic ore prices, though Chinese steel production and end user demand have slowed which is expected to decrease ore consumption and alloy prices in the coming months as speculators exit the market. The document provides market updates and price forecasts for manganese, silicon, and chromium ores and alloys in global regions including Europe, North America, China, and Turkey.

1. World Bulk
Ferro-alloys Markets
Metal Expert
Issue 9 (53)
Monthly report
September, 2016
Inputs increase, demand being stagnant 2
Prices 3
Manganese
Global market for Mn ore 5
European Mn alloys market 10
US Mn alloys markets 13
Turkish Mn alloys markets 16
Asian Mn alloys markets 18
Silicon
European FeSi market 24
US, Turkish & Asian FeSi market 27
Chrome
European FeCr market 29
European & US FeCr market 32
Asian FeCr market 33
Month in figures
maxof 2,5 years
September 2016Prices for October
shipments of Mn ore
reached to the highest
level since March 2014
Mn oreprice CIF China
+4
7 months 2015 7 months 2016
FeSi shipments from
Kazakhstan to Europe for
7 months ramped up by
4 times to 22‘000 t
FeSitrade
FeCrtrade
South African FeCr export
to China reached to
242‘000 t in July
+400September/January
SiMn prices in China risen
by 400 $/t since the
beginning of the year
SiMnprice EXW China
$/t
times
max
July 2016
September 2016
Price forecast in key global marketsContents
Term of delivery Aug 16 Sep 16 Oct 16* Nov 16* Dec 16*
India SiMn
(65% Mn; 16% Si; 2% C max; 0,2-0,3% P)
$/t, fob 770 815 870 865 830
Europe SiMn
(65% Mn; 17% Si; 2% C max; 0,17% P)
EUR/t, ddp 703 742 770 765 740
China FeSi
(75% Si)
$/t, fob 1040 1035 1045 1045 1035
Europe HC FeCr
(60-65% Cr; 6-8% C)
$/lb Cr, ddp 0,82 0,83 0,86 0,88 0,88
*-forecast. Source: Metal Expert

2. World Bulk Ferro-alloys Markets September, 2016
© Metal Expert
5
Mn
Global market for Mn ore
Manganese ore prices have added another 10%. South32 has raised offers of
the material (45.5% Mn) to be shipped in October to $5.2/dmtu and those of the
material (48% Mn) – to $4.8/dmtu. Eramet is selling the material (44‑45% Mn)
at $5/dmtu and the material (43% Mn) – at $4/dmtu. Other suppliers have not
yet announced prices. Prices are CIF China.
Global prices are supported by the increase in Chinese domestic manga-
nese ore quotations. Speculative demand in the domestic market has made
the cost of imports by 35‑40% lower over the past three months. This month,
the cost of imports has been $1.8/dmtu below domestic prices, whereas over
H1 the gap was $0.5/dmtu.
Price forecast for manganese ore (46% Mn)
CIF China
4,20
3,90
3,10
2,95
4,80
5,20
5,00
3,90
3,30
1,50
2,00
2,50
3,00
3,50
4,00
4,50
5,00
5,50
6,00
May16
Jun16
Jul16
Aug16
Sep16
Oct16
Nov16
Dec16
Jan17
USD/dmtu

3. World Bulk Ferro-alloys Markets September, 2016
© Metal Expert
6
Mn
Prices for Mn ore (44% Mn) in China
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
8,0
Jan16
Feb16
Mar16
Apr16
May16
Jun16
Jul16
Aug16
Sep16
Oct16
Nov16
Dec16
domestic market
import
FORECAST
Manganese alloy prices have dropped by $215/t in China in August-Sep-
tember, only coming up by $90/t in late September. Manganese ore prices
have been comparatively stable, but the increase has resumed and even sped
up in the latter half of the month. Thus, it is obvious that sellers are speculat‑
ing. It is also seen from the comparison with iron ore and steel product prices.
Chinese Mn ore and Mn alloys price indexes
0,0
10,0
20,0
30,0
40,0
50,0
60,0
70,0
0
1
1
1
1
1
1
1
1
Jan 16 Mar 16 May 16 Jul 16 Sep 16
Mn alloys price index
Mn ore price index

4. World Bulk Ferro-alloys Markets September, 2016
© Metal Expert
7
Mn
Raw materials price index, June 2012=100
25
45
65
85
105
125
145Jan.11
Apr.11
Jul.11
Oct.11
Jan.12
Apr.12
Jul.12
Oct.12
Jan.13
Apr.13
Jul.13
Oct.13
Jan.14
Apr.14
Jul.14
Oct.14
Jan.15
Apr.15
Jul.15
Oct.15
Jan.16
Apr.16
Jul.16
Mn ore Iron ore HRC
Although China is trying is to shut down excessive capacities, it put out 536 mil‑
lion t of steel over the eight months of the year, down mere 0.1% year-on-year.
Steel production usually declines by the year end. Steel product purchases have
declined now due to worse end user demand. In Q4, China is supposed to
cut output by 2‑3% quarter-on-quarter. Manganese ore requirement will
decrease, too.
Chinese steel output growth slows down
-10%
-5%
0%
5%
10%
15%
0
10
20
30
40
50
60
70
80
Jan13
Mar13
May13
Jul13
Sep13
Nov13
Jan14
Mar14
May14
Jul14
Sep14
Nov14
Jan15
Mar15
May15
Jul15
Sep15
Nov15
Jan16
Mar16
May16
Jul16
Steel production, mt
Steel production change y-o-y
Over seven months, China imported 9 million t of manganese ore, unchanged
year-on-year. The decrease observed in early 2016 has been made up thanks
to active purchases in May-July. Shipments to China will be stimulated by the
upturn in prices and profitability. China’s port stock levels have reached 2 million

5. World Bulk Ferro-alloys Markets September, 2016
© Metal Expert
8
Mn
t in late September, the same as last month. Consumption will be going down
according to the decrease in steel output. Higher import will make stocks
increase.
Mn ore imports to China increased again in July
0
200
400
600
800
1 000
1 200
1 400
1 600
1 800
January
February
March
April
May
June
July
August
September
October
November
December
2015 2016
'000t
Mn ore stocks lowered
0,0
0,5
1,0
1,5
2,0
2,5
3,0
3,5
4,0
0,0
1,0
2,0
3,0
4,0
5,0
6,0
7,0
Jan15
Mar15
May15
Jul15
Sep15
Nov15
Jan16
Mar16
May16
Jul16
Sep16
mt
USD/dmtu
Mn ore stockpiles in ports
price for Mn ore (48% Mn)
Speculations will cease in the Chinese market within the next few months,
Metal Expert believes. Prices will lose 30‑40% by January.
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believed to be reliable. Metal Expert cannot be made liable for any loss no matter how it may arise.
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