Ferro Silicon Is in Short Supply in Northwest China

Due to the continuous snow, the expressway is closed, the main consumption area of iron silicon 75%min in northwest China is in short supply. At present, the mainstream price of China ferrosilicon 75%min is stable at 5,800-6000 yuan/ton ex-factory cash, which is unchanged from the beginning of last week. With spot supplies tight and snow expected this week, industry insiders believe iron silicon prices in northwest China will rise slightly in the coming week at 75 per cent min.

"Today, more than five regular customers called me to ask if I could supply them with some ferrosilicon 75%min in stock. With heavy snow blocking highways, they are worried about receiving products ordered from suppliers in ningxia and Inner Mongolia on time, "a producer in shaanxi province said on Tuesday. He added that he did not have any in stock at the moment because he would not be able to ship all the previous orders until the end of the month. As it snowed again on Wednesday and Thursday, he said he thought it would be difficult for some customers who ordered 75%min of ferrosilicon from Inner Mongolia and ningxia to receive the goods on time, and predicted that the price of 75%min of ferrosilicon in shaanxi would rise by 50 yuan/ton in the coming week.

The company, which has an annual capacity of 75,000 tonnes, produced 6,000 tonnes in December and expects to produce the same amount in January as last month, with about 300 tonnes in stock. The manufacturer has two 33,000kva ovens, which are operating normally.

"Due to the heavy snow, we only received about 20 per cent of the ferrosilicon ordered from ningxia by 75 per cent min, so I called some local suppliers in shaanxi today to ask if they could supply us with some spot iron." Shanxi a magnesium plant disclosed. "Most of these suppliers are unable to supply from stock because they are currently delivering pre-orders. One of the suppliers offered 5,900 yuan/ton for 200 tons of ferrosilicon 75%min, which is 100 yuan/ton higher than my last purchase price of 400 tons at the beginning of last week. At present, I am still waiting for the goods to arrive." With snow expected in two days, he thinks the price of shaanxi ferrosilicon 75%min will rise slightly by 50 yuan/ton in the coming week due to tight spot supply.

The consumer, which has an annual capacity of 18,000 tonnes, consumed 1,200 tonnes in December and plans to hold steady in January and last month, with about 300 tonnes in stock.