Export Prices of Ferrosilicon From China Rose Slightly

Spurred by strong prices in the Chinese market, the current mainstream export prices of ferrosilicon in the Chinese market at 72%min and 75%min are $1,030-1,060 / ton and $1,060-1,090 / ton, respectively, offshore China, up about $10 / ton from the beginning of last week. Industry insiders expect export prices of ferrosilicon from China to remain firm in the coming week as prices of ferrosilicon from international suppliers rise.

A northern trader said on Monday: "I am currently quoting us $1,060 / ton for ferrosilicon 72%min offshore tianjin. I sold 100 tons at us $1,050 / ton cif haiphong at the beginning of this week with freight of us $10 / ton, up us $10 / ton from the acceptable base price at the beginning of last week. "The spot market is tight and most producers are reluctant to ship orders for delivery within 15 days below $798 per tonne in ex-factory cash. Coupled with the appreciation of the renminbi, my price is higher than it was at the beginning of last week." The trader said his overseas buyer said that due to the shortage of spot supply, the price of Malaysian suppliers has increased by 20 to 30 us dollars per ton from two weeks ago, and he expects export prices of ferrosilicon from China to remain firm at 72%min in the coming week.

The trader regularly sells 200 tons of ferrosilicon a month, compared with about 150 tons in November, and expects flat sales in December. The trader sold about 24,000 tons of ferrosilicon in 2018 and about 1,500 tons in the first 11 months of this year.

Another northern trader said he was currently offering $1,100 a ton for ferrosilicon 75%min offshore China, having sold 200 tons for $1,100 a ton cif busan on Monday at $8 a ton freight, up $10 a ton from the start of last week. "My last transaction was three weeks ago, when I sold 200 tonnes at $1,080 / tonne cif busan. Due to higher production costs in China, trading volumes in December will fall by 40 per cent, "gao said on Monday, adding that two major Chinese suppliers were struggling to raise prices by $7 a tonne due to tight spot supplies of ferrosilicon at 75 per cent min. With Russian ferrosilicon prices falling in Japan and South Korea, and higher prices in China and slow overseas purchases, he said he expected ferrosilicon prices to remain firm at 75%min in the coming week.

The trader regularly sells 3,000 tons of ferrosilicon a month, compared with about 3,000 tons in November, and expects to sell 2,000 tons in December due to falling prices from overseas suppliers. The trader sold about 60,000 tons of ferrosilicon in 2018 and about 35,000 tons in the first 11 months of this year.