The Price of Ferrosilicon in China Is Weak But Stable

Affected by the slight decrease in the purchase volume, the mainstream price of ferrosilicon 75%min in China is now stable at 5,700-5,900 yuan/ton ex-factory cash, which is basically unchanged from the beginning of last week. In view of the relatively tight spot supply, industry insiders believe that domestic ferrosilicon 75%min prices will remain weak in the next week.

A magnesium manufacturer in shaanxi province said he bought 800 tons of ferrosilicon 75%min from ningxia on Tuesday at a cash transfer price of 5,780 yuan per ton, with a freight of 80 yuan per ton. "The supplier raised his offer on Monday to 5,750 yuan per ton of ex-factory cash due to the active bidding of the steel mill, but today he accepted my offer, which is 50 yuan per ton lower than his bottom price this week but stable from the beginning of last week," the source said. His last transaction was at the end of November, purchasing 500 tons at the cash delivery price of 5,780 yuan/ton, with the freight unchanged. But he expects a small 20 per cent month-on-month decline in ferrosilicon purchases in December, taking into account ample inventories as a result of falling magnesium prices. Most of his suppliers in ningxia and qinghai will not be able to deliver all their orders by the end of December, the source said, so prices for ferrosilicon 75 percent min are expected to be stable in the coming week.

The plant has an annual consumption capacity of 50,000 tons of ferrosilicon and consumed about 4,000 tons in November. Due to the decline in magnesium prices, it plans to consume 3,500 tons in December and currently holds about 1,500 tons of inventory. The plant consumed about 45,000 tons of ferrosilicon in 2018 and about 40,000 tons in the first 11 months of this year.

A producer in qinghai said it is currently offering ferrosilicon 75%min for 5,750 yuan/ton ex-factory cash, and selling 400 tons at 5,900 yuan/ton delivered to xinjiang, with freight of about 200 yuan/ton, down 50 yuan/ton from the beginning of this week but unchanged from the beginning of last week. "Because of the steel procurement, we will try to offer more early this week raised 50 yuan/ton, but considering the shanxi and xinjiang region most customers procurement points from December to reduce, we finally offer relatively early last week," said Thursday that the manufacturers and revealed his early last week to sell at a price 5900 yuan/ton to 300 tons, the freight is about 180 yuan/ton, but said until early January next year to complete delivery of all orders. The producer expects China ferrosilicon prices to stabilize at 75%min in the coming week.

The producer, which has an annual capacity of 50,000 tons, produced 2,300 tons in November and plans to keep production flat in December with about 500 tons in stock. The producer has two 25,000kva ovens, both of which are operating off-peak, with a total output of about 35,000 tonnes in 2018 and about 25,000 tonnes in the first 11 months of the year.