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|Price of Chinese FeSi Continues to Rise Only Slightly in Domestic Market|
|=Anticipation of high prices is strong in domestic market, but weak in export market due to reluctance in buying =|
The price of Chinese ferro-silicon has continued to rise only slightly in the Chinese domestic market. On the other hand, the price for export has grown at a sluggish pace due to reluctance in buying arising from the rumor the export duty will be reduced.|
The reason why the price for the domestic market continues to rise is (1) Domestic steel mills raised their November purchase price (including tax and delivered at factory) by CNY150 - 200 from the prior month, (2) Hike of production cost due to the increase in electricity rate and (3) Tight supply due to a delay in recovery of production.
The offer price in the northwestern areas of the main production region rose to CNY6,400 - 6,500 (Si 75% A-Grade, including tax, ex-factory), up by CNY50 from a week ago. Besides, the high offer price of CNY7,000 has been seen occasionally in the region where the comparatively high electricity rate for low-water season is being applied. Steel mills' eagerness to increase the inventory in hand also supports a high price voiced by producers, and a slight rise in price seems to continue for a while.
As to export, the rumor the export duty on ferro-silicon will be reduced from next January has caused the customers to have reluctance in buying, and therefore the dealing has continued to be at a low level.
Albeit the main offer price form the Chinese side is said to be US$1,440 - 1,450 per ton FOB (Si 75% A-Grade), some Chinese trading firms are taking a strong attitude toward sales with the background of good sales for the domestic consumption, and a certain trading firm in Japan has lately received an offer at US$1,500s per ton CIF CY-CY. However, no contract has been made on this offer.
|last modified : Wed 27 Nov, 2013 [14:54]|