Chinese ferrosilicon offers in downward trend
2010-01-18 10:08:30 【Print】
BEIJING (Asian Metal) 18 Jan 10 – Chinese ferrosilicon producers generally made some deals at RMB6,000-6,100/t ex works for ferrosilicon 75% and RMB5,900-6,000/t ex works for ferrosilicon 72% recently. Ferrosilicon price remains softening currently, and participants believe that it may go down further slightly in the coming days.
A trader in Gansu, who exported 650t of ferrosilicon in December, sold 100t of ferrosilicon 72% for USD1,250/t FOB China and 100t of ferrosilicon 75% for USD1,260/t FOB China to Middle East last Friday. He bought 100t of ferrosilicon 72% for RMB5,900/t ex works from Ningxia.
“Ferrosilicon price has already decreased these days, and it may go down further in the coming days,” said the source. “I think I can get ferrosilicon 72% at RMB5,800/t ex works from Ningxia if I bargain harder. The producers generally sold at RMB6,000-6,100/t ex works for ferrosilicon 75% currently.”
A producer in Ningxia, who usually produces 2,000tpm of ferrosilicon, sold 200t of ferrosilicon 72% for RMB6,050/t ex works and 200t of ferrosilicon 75% for RMB5,950/t ex works last Friday.
“It’s hard to predict whether ferrosilicon price may go up or not, but I think some steel mills have already bought enough materials for their production in January and February. They are not intrested in purchasing now,” said the source. “I think the transportation cost goes up in winter, so it can not go down much further.”
The source offers RMB6,100/t ex works for ferrosilicon 72% and RMB6,200/t ex works for ferrosilicon 75%, however, the concluded price is usually lower than this price level.
Another producer in Ningxia, who usually produces 2,000tpm of ferrosilicon, sold 300t of ferrosilicon 72% for RMB6,000-6,050/t ex works on last Friday, and he offers RMB6,100/t ex works for ferrosilicon 72% and RMB6,200/t ex works for ferrosilicon 75% currently.
“The whole ferrosilicon market will slide down further, and steel mills and foundries have already stocked some materials,” said the source. “The demand is not good now, and Spring Festival is coming, so ferrosilicon market may take a short break.”
