Price of China's FerroPhosphorus Exports Fell

Due to the high inventory of suppliers and the current China phosphor iron 23%min silicon 3% Max carbon 1% Max, the mainstream export price fell by $10 / ton from the beginning of last week to $310-330 / ton China offshore, and the export market transaction was stable this week. Given the ample supply, market participants believe that China's phosphorous iron export prices will continue to decline in the coming week.

A trader in tianjin said she bought 100 tonnes of phosphor iron 23%min si 3% Max carbon 1% Max at us $310 a tonne offshore in China earlier this week, down us $10 a tonne from the price at the start of last week. "Last time I bought 25 tons of goods from China at the end of October for $330 / ton," the trader said on Thursday, adding that inventories of suppliers in henan and guizhou had increased to varying degrees this week compared with October because of sluggish demand from Chinese steel mills, and most suppliers could accept a counter-offer of $10 / ton to spur transactions. Given the ample supply in the market, she believes China's phosphorous iron export prices will continue to fall to $300 / ton offshore China in the coming week.

The company's monthly regular trade volume of phosphorus and iron is 100 tons, with sales volume of about 100 tons in October. It is expected that the sales volume will be stable in November, and there is no inventory at present. The trader traded about 3,600 tons of phosphor iron in 2018 and about 1,000 tons in january-october 2019.

A producer in henan said it sold 50 tonnes of phosphorous iron 23 per cent min silicon 3 per cent Max carbon 1 per cent Max at $330 a tonne cif India earlier this week, including freight of about $15 a tonne, down $10 a tonne from its lowest price at the start of last week. "Because of the decline in domestic demand for steel mills, we inventory increased about 30% month-on-month in November, therefore agreed with the buyers in a counter-offer," the producer said on Thursday, and told him the last clinch a deal is mid-october to 330 dollars/tons of China offshore sold 75 tons of cargo, this month he received only 3-5 enquiry, steady but fell more than 50% month-on-month. Based on sluggish demand but ample supply, he expects China's phosphorous iron export prices to fall to $310 a ton offshore in the coming week.

The company has an annual phosphor iron production capacity of 24,000 tons and produced about 1,500 tons in October, while production is expected to decline to 1,000 tons in November due to high inventories, compared with about 800 tons currently in stock. Their annual output is about 22,000 tons in 2018 and about 15,000 tons in january-october 2019.