Chinese ferrosilicon market far from rebound
2008-12-24 08:47:47 【Print】
BEIJING (Asian Metal) 24 Dec 08 - Chinese ferrosilicon market remains sluggish though it is reported that there are more enquiries in the market and ferrosilicon market becomes a little bit active. The mainstream price is in the range of RMB4,700-4,800/t (USD688-703/t) ex works for ferrosilicon 72% and RMB4,900-5,000/t (USD717-732/t) ex works for ferrosilicon 75%. Although there are more orders in Chinese domestic market, the export market keeps quiet, with current prices in the range of USD960-990/t FOB CMP for ferrosilicon 75%.
A smelter in Inner Mongolia, with a production capacity of 100,000tpy of ferrosilicon, offers RMB5,000/t (USD732/t) ex works for ferrosilicon 75% and RMB4,800/t (USD703/t) ex works for ferrosilicon 72%, but has not made any deals since two weeks ago. "We sold some materials to some steel mills, but the demand is still very slow now," said the producer. "I do not think the market can recover in a short time."
With about 2,000t of ferrosilicon in stock, the smelter has halted their production for three months, believing that they will not resume the production in the coming two months.
Another smelter in Inner Mongolia, with an output of 1,800tpm of ferrosilicon, sold a batch of ferrosilicon 72% for RMB4,400/t (USD644/t) VAT excluded to Tai Steel a week ago, believing that some steel mills and magnesium smelters are resuming their production, but the concluded price of ferrosilicon is still very low.
"We have gotten more orders these days, but the concluded price has not increased because the purchase quantity is still small," said the producer.
The source now offers RMB5,000/t (USD732/t) ex works for ferrosilicon 75% and RMB4,850/t (USD710/t) ex works for ferrosilicon 72%, believing that the Tai Steel may increase their purchase prices to RMB5,300/t (USD776/t) delivered for ferrosilicon 72% for the next batch.
A Henan-based smelter, with an output of 200-300tpm of ferrosilicon, offers RMB7,000/t (USD1,024/t) for ferrosilicon 45% powder, but has not made any deals these days, thinking the market will keep stable in the coming weeks.
