Malaysia Ferrosilicon Export Quotation Increased

Supported by the shortage of spot supply, the mainstream export price of Malaysia ferrosilicon 75%min is now up $20 / ton from the beginning of last week to $1,040-1,070 / ton Asia. As Asian demand has yet to pick up, industry insiders generally believe that Malaysia's ferrosilicon export prices will remain stable in the coming week.

"At present, I am offering us $1,050 / ton for ferrosilicon 75 per cent min cif Asia for delivery at the end of February, the lowest acceptable price is us $1,040 / ton, up slightly from last week by us $20 / ton," a Malaysian producer said on Thursday. "Since the Japanese customer will not be back to market until next Monday, we have not received any firm enquiries this week," the producer added, adding that he sold 60 tonnes of the product at $1,040 per tonne cif Japan early last week and delivered it at the end of February, and that they will not be able to execute all orders until the end of February. He raised his offer this week to around $20 a tonne because of tight spot supplies, and believes Malaysia's ferrosilicon export prices will stabilize in the coming week as demand does not recover.

The producer has an annual capacity of 60,000 tons and produced about 4,000 tons in December, with production expected to be flat in January. Currently holding 500 tons. Another Malaysian producer is in the same situation. He is currently offering ferrosilicon 75%min at us $1,080 / ton cif Asia. The lowest acceptable price is us $1,070 / ton. "European clients is currently in the holidays, Japanese customers will not return to the city before next Monday, we have not received any real single inquiry, but due to our production in February almost sold out, I will not accept less than $1070 / ton at the end of February to clinch a deal the price," the producer said on Thursday, adding they two weeks ago to $1050 / ton cif price 200 tons in Asia, due to weak demand, he thinks that in the coming week Malaysia ferrosilicon export prices stabilized.

The producer has an annual capacity of 240,000 tons and produced about 18,000 tons in December, with production expected to be flat in January. Currently holding 2,000 tons.