Ferrosilicon demand improving in South Asia but market still slow

BEIJING (Asian Metal) 14 Jan 09 - Ferrosilicon demand remains slow and stable in South Asia, with few deals concluded. The mainstream price keeps in the range of USD1,070-1,100/t CIF India and Pakistan for ferrosilicon 72% and INR49,000-51,000/t (USD1,043-1,085/t) ex works for ferrosilicon 70-75% in India and Bhutan.Asian Metal CopyrightA smelter in Bhutan, with an output of 700tpm of ferrosilicon, offers INR51,000t USD1,085t ex works for ferrosilicon 70-75%, up from INR49,000t USD1,043t ex works for ferrosilicon 70-75%, but made few deals in the past several weeks.Asian Metal Copyright Participants believe that the market will keep slow in the coming weeks.

A smelter in Bhutan, with an output of 700tpm of ferrosilicon, offers INR51,000/t (USD1,085/t) ex works for ferrosilicon 70-75%, up from INR49,000/t (USD1,043/t) ex works for ferrosilicon 70-75%, but made few deals in the past several weeks. "The demand seems to improve now, and we raised our offers in the past several days, but there are no more orders from customers," said the source.Asian Metal Copyright "Some steel mills become active in purchasing ferrosilicon, but the price has not gone up much.Asian Metal Copyright "Some steel mills become active in purchasing ferrosilicon, but the price has not gone up much.Asian Metal Copyright "Some steel mills become active in purchasing ferrosilicon, but the price has not gone up much.Asian Metal Copyright"

According to the source, there is no import duty on the bulk ferroalloys sold from Bhutan to India, and they mainly sell the material to some Indian customers and do not offer the material for USD dollar price now.

A trader in Pakistan, who usually purchases 500-800tpm of ferrosilicon, bought about 200t of ferrosilicon 72% for USD1,000/t FOB CMP from a Chinese supplier in Hong Kong last week. "The demand is still very slow now, and most steel mills in Pakistan have been suspended in the past several months, and several steel mills plan to resume production in March," said the source.Asian Metal Copyright "We expect the demand to become stronger in the coming weeks.Asian Metal Copyright "We expect the demand to become stronger in the coming weeks."

The source received an offer of USD1,100/t CIF Pakistan for ferrosilicon 72% from a Chinese supplier and the supplier can not accept any lower prices, but the source are not interested in purchasing the material at the price.

The trader received some offers of USD950/t FOB CMP for ferrosilicon 72% from Chinese suppliers several weeks ago, but can not find any prices below USD1,000/t currently.

A trader in Vietnam, who usually purchases 3,000-4,000tpy of ferrosilicon, received offers of USD1,050/t FOB CMP for ferrosilicon 75% from Chinese suppliers, but has not made any deals these days.