According to Mr Zhang Zengchan secretary general of China Ferroalloys Industry Association ferroalloy prices in China are likely to decline further in the coming couple of months owing to weakness of the domestic steel market.
 
 He said that, with constant rises of manganese ore and chromium ore prices that will squeeze their profit margins, some ferroalloys producers will have to cut output, adding this may help rally the price of ferroalloys.
 
 Mr Zhang said if the export keeps soaring, the government may take more measures to limit it, China is the largest ferroalloys producer and exporter in the world.
 
 According to the association China’s export volume of manganese alloys surged 27 % YoY in January to July, and the total exports for the whole year are likely to hit one million tonnes.

It is reported that China’s smaller steel makers want to be represented in annual iron ore price talks as they are paying higher prices for the raw material than larger rivals.
 
 Mr Geng Bingxi deputy secretary general of the China Chamber of Commerce for Metallurgy Industry said Baosteel Group Corp should represent the whole industry in talks, rather than just the bigger mills.
 
 He said that “China should study a new negotiation mechanism. The leading negotiator should represent the whole industry rather than some producers who enjoy long term contracts at lower”

Reuters reported that Vale’s demands for an unprecedented mid cycle hike in term iron ore prices could stem a slide in the Indian spot market, which offers cheap supply for Chinese mills seeking to undermine the Brazilian miner’s position.
 
 Mr Rahul Baldota president of Federation of Indian Mineral Industries said that “Indian ore should become attractive for China, if Vale asks for a rise over their contractual price. Then the market may come back to India. But the reality is the market is still bad. There is virtually no demand as of now.”
 
 Mr Zou Jian chairman of China Metallurgical Mines Association said that “Right now, Vale’s iron ore prices are more expensive than other ores in China considering the freight rate. Chinese mills pay higher for the Vale’s ores because of the long-term supply agreement. If they cut the supply and terminate the agreement, Chinese mills can pay less. That would be good.”
 
 Spot prices for Indian ore in China are now almost equivalent to Vale’s term price. That’s a sea change from the last few years, when the price for lower quality spot cargoes was well above that of better quality term ore.
 
 The spot market for Indian iron ore imports to China has dried up over the past 6 to 7 weeks, wilting in the face of closures by Chinese steel mills, high port stocks, a hike in Indian export taxes and competition from other exporters. Spot prices in China have dropped by 12% in the last month, offering Chinese mills a lower quality but cheap alternative to term iron ore from Brazil.

Dr Manmohan Singh PM of India while laying the foundation for modernization and expansion of the Salem Steel Plant on Friday said that the recent surge in the steel price as a matter of concern and appealed to steel producers in the country to take all possible measures to maintain reasonable price stability.
 
 Dr Manmohan Singh said that “As responsible corporate citizens I am sure that the Indian steel producers will see the wisdom of helping the government in controlling inflation.”
 
 He said that “Though the rising prominence of Indian steel industry on the world’s steel landscape mirrors the emergence of the country as a leading economic power, the per capita consumption of steel is still very low in comparison to other industrial and industrializing countries. Yet we are, today, in a sellers’ market and will continue to be. Hence it is all the more imperative that we work hard to augment supply.”
 
 He said that “From a small beginning, India has now become the fifth largest producer of steel in the world. If the present trend continues, we will become the second largest in the world by 2015. A lot of hard work and enterprise is needed to meet the rising steel demand. Our steel companies have to operate on the frontiers of technology, managerial excellence and high productivity.”
 
 Sounding an optimistic note that in the 11th Plan Period, the country could expect the economy to grow at around 9 per cent per year, he, however, cautioned that this growth process should not be inflationary hence we must step up productivity and increase output. He said that “We have to go a long way in creating the infrastructure essential for modernizing India for which the availability of steel products is a key requirement.”