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[Ferro-Alloys.com] reported that Ferro Silicon1705# futures increased lightly only on Tuesday, and except Tuesday the price kept decreasing this week. On Friday(April 14th) morning, the close was 5154RMB, down by 40RMB, with  trading volume 9080. And Chinese domestic spot market was not active. This week they have produced ferro silicon 1705# several hundred mt, but the saling was not very good, therefore at present only three companies are still producing ferro silicon 1705# in Centre Halfback area, just because the price is not high, a company from Ningxia province told.

According to a well-known person in this field, now Chinese domestic ferro silicon capacity is 7.8 million mt, mainly distributed in Qinghai, Gansu, Ningxia provinces, Inner Mongolia, west Shanxi province and Northwest China where owns rich coal and electric power. In 2016, Ferro Silicon production reduced by 1.17% than last year, the major reason was that most companies in Ningxia province and Inner Mongolia stoped producing this. However, the reason why the ferro silicon price rising is that increasing semi-coke price, higher automobile transport cost, short supply of ferro silicon and the adjustment on elctric charge in Northwest China etc. He added, although the supply goes up this year, based on high cost, without changing of demand, ferro silicon price is hard to decline.

In April, Chinese domestic ferro silicon purchasing price of major steel companies has been determined, from 6050RMB/MT to 6250RMB/MT. The total purchasing amount is 20130mt, the specific bids are as follows:

• [Editor:Zhanghuimin]