Chinese Silicon Calcium Exports Clinch A Deal Slowly

Due to weaker overseas inquiries, the current mainstream export price of Chinese silicon-calcium 30-55 is $1,350- $1,400 / ton for China offshore, down $20 / ton from a week ago. Given the high production costs, industry insiders believe that China's export prices of calcium and silicon will be weak due to slowing demand and stable trend.

"My current offer for sialcium-calcium 30-55 is $1,360 / ton fob China 15-day wire transfer, exporting 100 tons at $1,350 / ton on Monday, down $20 / ton from the bottom line early last week," a trader in northern China revealed on Tuesday. "In fact, the client sent us an inquiry at the beginning of last week, but the deal was closed on Monday because I offered him a better price," the trader added. He also pointed out that the last transaction was in early November, exporting 120 tons at the price of $1,370 / ton. Only two inquiries were received this week, three less than the weekly inquiries in October. The main reason was that most foreign customers were bearish on the price of Chinese silicon and calcium and did not place orders on time. He also stressed that the cost of most Chinese producers is about 9,200 yuan/ton, and the freight from the factory to tianjin port is about 260 yuan/ton. The demand is slowing but the production cost is high, and the export price of calcium and silicon in China is expected to be weak and stable in the coming week. The trader's regular monthly trade volume is 300 tons, and the sales volume in October is about 300 tons. Due to the slow inquiry, the sales volume in November is expected to be 200 tons, and there is no inventory at present. They sold 2,500 tonnes in 2018 and 3,000 tonnes in the first ten months of 2019. Another trader in northern China said his current export offer for silica-calcium 30-55 is $1,380 / ton China offshore, the same as the price at the beginning of last week. Her lowest price is $1,360 / ton, down $10 / ton from the beginning of last week. "There is a Indian customers bid 1350 dollars/tons of India landed purchase on Monday, 120 tons, including freight $15 / tons, but I can not accept, because domestic production cost is high, the customer from Brazil eventually a procurement to the product price," the trader said on Tuesday, enquiry quantity at present this month than enquiry quantity first half fell by 50% in October, because Brazil calcium silicon prices are lower and quality is better. His latest order was in early November to export 50 tons at $1,380 a ton, and another in early October to sell 50 tons at $1,400 a ton. He pointed out that production costs of the two major ningxia producers are 9,300 yuan per ton of ex-factory cash, and he thinks Chinese export prices of calcium and silicon will be slightly stable in the coming week as demand weakens and production costs remain strong.

The trader's regular monthly trade volume is 100 tons, and the sales volume in October is 100 tons. Due to the decrease of inquiry, the sales volume in November is expected to be 50 tons, and there is no inventory at present. They sold 3,500 tons in 2018 and only 1,000 tons in january-october 2019.