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▶ Currency Movement
  As of April 6, 2019:
USD to Korea: 1137 ,   USD to CNY: 6.72 ,  USD to JPY: 114.5  ,  USD to EU: 111.7

  • Sometimes check the yearly move and then monthly move to get a feeling of the current and future trend
  • Basically need to memorize current rates of major currencies
  • Often can find a good opportunity in financial crisis (currency crisis) from a certain country
  • Try to find a reason for a currency valley (sudden rise or drop) 


 

 

Ferroalloy Market
  • Not a big change in other ferroalloy products such as silicon metal and silicon manganese
  • Will handle more other precious metals in the future such as FeMo and FeTi


    1. Ferro Silicon



n  Current price as of April 5th:
 - Market price for FeSi75% lumpy: $1200/mt FOB
 - Lowest bidding: $1150/mt FOB

n  Price movement last week from April 1st to April 5th:
 - Slight decline: about $10~20
 - Reason: still slow economy

n  Price anticipation next week from April 8th to April 12th
 - Still slow
 - Most likely decline further


“Market price for FeSi75% is around $1200/mt but you can often find even $1150/mt at the transaction level. As you find this kind of low bidding number, it signals the market price would go down further.”



    2. Ferro Vanadium

     n  Current price as of April 5th:
       - China-origin price of FeV80%: $56/kg V FOB
       - EU/Russia-origin price of FeV80%: $52/kg V FOB

n  Price movement last week from April 1st to April 5th:
   - Plummeted: dropped from $64/kg to $56/kg in China market
   - Reason: still in the way of getting a right price level  

n  Price anticipation next week from April 8th to April 12th
   - Not clear / tough to guess
   -  Probably China FeV price would go down future close to $50


“Quite a fluctuation in price last week and quite a gap between China and EU spot prices. Dropped quite significantly in China. Some plants in China halted production due to a recent unstable price movement”


 External Situation 


    Trade War between US and China

n  Current situation 
  - A few good news are being reported that the negotiation is going well and there will be a president summit soon
  - Never forget the volatility of Doland Trump

n  How this will affect ferroalloy market
  - Obviously positive signals to ferroalloy market
  - Ferroalloy prices would rise with the expectation of more demands from downstream market 






What are Ferroalloys? (II)

We normally call it steel industry, but more accurately, it is the iron & steel industry.In other words, there are iron industry and steel industry. Normal people would not know what the difference between them is, but it is quite essential to understand them before we move on.
1.  When we say ‘Iron Plant,’ it produces products with iron ores. On the other hand, ‘Steel Plant’ is producing steel products mainly with steel scraps.
    2. If so, what is key difference between Iron and Steel? It is a strength in one word. More accurately, the content rate of carbon because carbon decides on the strength of steel products. 
      - Iron: If the carbon rate goes over 2%, it becomes solid like a stone, and it is not bendable any longer and just breaks when a force is added. 
      - Steel: if the carbon rate stays below 2%, it is still bendable and deformed when a force is added rather than breaking.

What are Ferroalloys? 

Ferroalloys are namely alloys one or more alloying elements with iron. 

For example, Ferrosilicon is an alloy made of iron and silicon (Fe + Silicon).
In the same way, Ferromanganese is made of iron and manganese. 

 


@SUN Inside

Actually, you should understand very basics of the steel industry in order to understand the ferroalloy industry. We can divide the steel industry into three groups as below:

  • Mining Industry 
  • Ferroalloy Industry
  • Steel Industry (more accurately Iron & Steel Industry)
In fact, more than 99.9% steel products we are using right now are made after the process of using ferroalloys. So much so, ferroalloy takes a big part among entire value chain of steel industry. 






Welcome to SUN Inside


SUN Inside was founded in 2013. Since then, we have become a global sourcing company with a wide customer base in about 24 countries across the world. We have built an excellent reputation in both domestic and overseas market, through long-term partnerships with leading manufacturers and distributors. Our commitment is to create true values for our customers with best products and services, so that our customers can always enjoy a family-like partnership and true values in the business with SUN Inside.


CEO

Andy Sun (Jang, Sun Ho)