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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]
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