US ferrosilicon prices stay firm as traders still looking for material

PITTSBURGH (Asian Metal) 18 Mar 10 – US ferrosilicon prices maintained their strength through the week as a continued lack of material was an issue for most domestic traders. Although most large sales for Q2 procurement have already been concluded, the overall ferrosilicon market should still see slight gains in the upcoming weeks.

The market continues at approximately USD0.93-0.96/lb, with the bulk of cheaper material under USD0.90/lb having dried up about two weeks ago.Asian Metal Copyright There are reports of three barge loads, or 4,500t, of ferrosilicon from China already on their way to the US, which will be available for sale in June.Asian Metal Copyright Ferrosilicon started 2010 at around USD0.Asian Metal Copyright With the Chinese ferrosilicon export market having slowed down over the past month, a large enough price gap between the US ferrosilicon market has become available for traders to import material from abroad.Asian Metal Copyright75-0.77/lb.

With the Chinese ferrosilicon export market having slowed down over the past month, a large enough price gap between the US ferrosilicon market has become available for traders to import material from abroad. On an FOB basis, Chinese 75% material is priced at USD0.Asian Metal Copyright93lb delivered.Asian Metal Copyright76-0.77/lb, or around USD0.Asian Metal Copyright93lb delivered.Asian Metal Copyright86-0.88/lb delivered to a major US port, thereby giving more or less a 10% margin for traders to resell domestically in the US.

There are reports of three barge loads, or 4,500t, of ferrosilicon from China already on their way to the US, which will be available for sale in June. Aside from the first two months of 2009, there were practically no ferrosilicon imports from China to the US during all of last year.

A large US trader, who indicated prices at USD0.92-0.96/lb, had booked a two truckload sale earlier this week at USD0.93/lb delivered.Asian Metal Copyright86-0.Asian Metal Copyright The source said the pace of appreciation had slowed, but was still optimistic about the strength of the overall market heading into the second quarter.

“Most of the big orders for Q2 are finished, but that doesn’t mean we won’t see some further increases moving ahead into April and May. Supply is still very tight and could get even tighter if capacity utilization rates continue to rise,” the trader commented.

Capacity utilization rates in the US rest at around 70%, according to the latest statistics from the American Iron and Steel Institute (AISI). There is substantial speculation that utilization rates could reach as high as 80% during the second quarter, which would severely limit material availability.

One of the largest US-based ferrosilicon suppliers reported he had no material available for sale on the spot market at present. The source indicated strong orders, however, from end-users and stable pricing in the mid USD0.95/lb range.

“There are traders coming to us begging for material,” the source said. “We can’t supply because we just don’t have it on hand.Asian Metal CopyrightPITTSBURGH Asian Metal 18 Mar 10 – US ferrosilicon prices maintained their strength through the week as a continued lack of material was an issue for most domestic traders.Asian Metal Copyright I would say the market is very strong right now.”