October 14, 2008

Ferrosilicon prices on upward trend in China

It is report that ferrosilicon market kept running smoothly with the price further increasing last week. Although recent export market appeared to be a little bit quiet, the price kept increasing.

The ex work price of ferrosilicon 75# has been broken through CNY 7,500 per tonne about USD1,074 per tonne in domestic market and RMB7,400 per tonne about USD1,060 per tonne for 72# respectively. It was said that one Japanese purchaser finished his deal with the price of USD 1,630 per tonne CIF Japan for 1,000 tonnes delivered in April.

Domestic price was increasing and said that raw materials for ferrosilicon production showed further increase, especially coke price. Moreover, it is rumored that power cost will be further hiked up. Based on increasing production cost, producers further increased their purchase price.

As per report during the period of July 20th to September 20th those enterprises with high pollution have to be closed down or reduce their production. In order to reduce the loss, the enterprises have made full efforts to produce. As a result, the demand for ferrosilicon appears stronger. Moreover, magnesium ingot price also jumped up both in domestic and international market. Robust magnesium market also has positive influence on high ferrosilicon price.

This week the international market seemed to be quiet, expect Japanese market. It was said that the demand for ferrosilicon was pretty strong in Japan. The transaction price of ferrosilicon 75# was stable at 94 to 97 cent/b in American market. Furthermore, only small deals to be done with Indian purchasers recently according to traders.

It is predicted that the ferrosilicon market will keep robust in the near future, and the price may further increase.

(Sourced from Ferro-alloys.com)