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Asia ferrosilicon: Spot offers rise further as Chinese supply tightens

https://www.chemnet.com   Mar 24,2017 Platts
Spot offers for 75% Si ferrosilicon in Asia rose further this week as some Chinese producers have suspended offering, thus tightening supplies, industry sources said Thursday.

S&P Global Platts raised the Chinese 75% Si ferrosilicon assessment to $1,100-1,150/mt FOB China Thursday, up from $1,060-$1,120/mt last Thursday.

Platts' assessment of the spot CIF Japan import price of 75% Si ferrosilicon was $1,070-$1,100/mt CIF Japan, up from $1,050-$1,060/mt last week.

"Domestic offers are at Yuan 6,400/mt ($929/mt), delivered to Qingdao port, up from Yuan 5,900/mt last week and buyers are adopting a 'wait-and-see' approach. FOB offers have also gone up to as high as $1,200/mt, up from in excess of $1,100/mt last week. I have overseas inquiries but they retreated when they heard the offering level," said a northwest China-based trader.

A south China-based trader also heard FOB offers as high as $1,200/mt, but reckoned $1,140-$1,150/mt was more appropriate.

"Ferrosilicon FOB offers have jumped sharply from $1,140-$1,150/mt last week. Yesterday, at a ferroalloy conference, market participants said domestic offers were at Yuan 5,800-5,900/mt ex-works, up from Yuan 5,100-5,200/mt last amid limited available stocks in the market. Buyers, however, prefer to wait and see," added the southern Chinese trader.

A northwest China-based producer said: "Domestic ferrosilicon prices have gone up late last week to Yuan 5,800-5,900 ex-works. This week, they are steady. I'm not sure how much the FOB offer is."

A Southeast Asian producer also heard Chinese domestic offers had gone up to Yuan 5,900/mt ex-works and said the FOB offer would also have gone up to $1,200/mt in theory. He, however, reckoned offers at in excess of $1,100/mt FOB were more appropriate.

The northwestern Chinese trader added that he had heard Japanese buyers' purchasing intentions in excess of $1,100/mt CIF Japan.

Japanese sources said offers from Chinese, Russian and Malaysian producers were in the range of $1,100-$1,140/mt CIF Japan.

One Japanese trader said he has sold at $1,070/mt CIF Japan. "If you are looking for 100 mt or even smaller lots, you must pay above $1,100/mt CIF Japan, but lower prices are possible for larger lots," said the Japanese trader.

A second Japanese trader said inquiries picked up this week on several electric arc furnace steelmakers issuing April-June buy tenders for lots ranging from 50 to 500 mt.
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