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Low Inventory of Ferrosilicon in China (August11th-August15th)

  • Monday, August 18, 2014
  • Source:ferro-alloys.com

  • Keywords:FeSi,Inventory,Operation rate,Northwest China
[Fellow]This week bids of ferrosilicon for August delivery were over in China. Ferrosilicon producers had tight supply of FeSi75# and the overall demand kept stable. Low Al and high purity ferrosilicon producers kept normal production in China.

[Ferro-alloys.com] This week bids of ferrosilicon for August delivery were over in China. Ferrosilicon producers had tight supply of FeSi75# and the overall demand kept stable. Low Al and high purity ferrosilicon producers kept normal production in China. The main stream ex-work tax-inclusive prices remained steady, with FeSi75# being RMB5,850-5,900/mt(USD952-960/mt) and FeSi72# being RMB5,500-5,600/mt(USD895-911/mt). Ningxia Hui Autonomous government had agreed to increase the number of benefited enterprises to 160 from 86 and increase the preferential power price to RMB0.03/Kwh.

Export market ran smoothly this week. The situation of foreign inquiries seemed steady, but foreign ferrosilicon buyers tried hard to slash the purchase price. Export price of ferrosilicon ranged from USD1,360/mt to USD1,380/mt FOB at Tianjin port. FeSi75# remained €1,140-1,200/mt in European markets and 98-100 cents/lb in US market.

Ex-work price of FeSi75# rose to Rs76,000/mt (RMB7,687/mt) in Guwahati, India and ex-work price of Bhutan FeSi75# remained Rs 77,000/mt (   RMB7,788/mt). Export prices from Bhutan to Europe remained USD1,340-1,360/mt,FOB at Kolkata port. Sources said one large contract for September shipment was traded at USD1,370-1,380/mt CIF at Japanese ports. FeSi75# was USD1,250-1,300/mt in South Korea. South Korea imported 29,477 mt of ferrosilicon in July 2014, with large increase of Russian materials.

Analysis: Ferrosilicon supply remained much tight in mid August 2014 and the overall operation rate kept steady in main production regions. Supported by local preferential power policies and gradual operation of new projects, ferrosilicon supply was likely to become improved in late August in China.

  • [Editor:Phillip.Feng]

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