News and Events

Ferrosilicon price still continued to rise

The market price of ferrosilicon has still continued to rise. The current price of ferrosilicon offered from China is USD 1,900 per tonne CIF Japan with an offer of USD 2,000 CIF as a higher side. Also, the price of Russian ferrosilicon is continuing to rise and the latest ones offered from Russia are in the range of USD 1,950 to USD 1,980 per tonne CIF Japan. The actual price of Russian product as recently contracted has risen up to a level of USD 1,950 CIF, which is compared with USD 1,400 CIF as of the end of August 2010.

The domestic price of ferrosilicon in China is CNY 8,400 per tonne ex warehouse in Tianjin, having risen by CNY 1,000 per tonne for the last 2 weeks. In the same case as that in Japan, the stocks of ferrosilicon held by steel companies of China have decreased to a considerable extent and this aspect has stimulated many of Chinese steel mills to be in a hurry to purchase ferrosilicon.

China is scheduled to have soon many holidays under the names of the Mid Autumn Festival and the Nation Day. Therefore, it is entering into a season to be a lack of times to contact with Chinese suppliers. This matter has also become a factor to let the buyers concerned feel an impatience.

In view of the fact that the market price of ferrosilicon has risen to a level of USD 2,000 per tonne, the producers in Huanan district of China, where is out of the objective area to regulate exhaust of carbon dioxide at present, are moving to enter into the structure to increase their production of ferrosilicon as the one and only chance. Also, even in the north west area of China, where has been called as the silicon land to produce more ferrosilicon and has been specified to apply to the regulations for facilities to produce ferrosilicon, being bewitched by a high price of ferrosilicon, it seems to see many cases, which are the typical and canny ones in China and produce stealthy or unofficially ferrosilicon for a short period.

In this meaning, there is an opinion in the market that a higher price than USD 2,000 per tonne for ferrosilicon is supposed to be entering into the dangerous water area. One of the parties concerned said that the current price of ferrosilicon has to be aware of approaching the high price of USD 2,400 per tonne recorded in early summer of 2008, when Beijing Olympic Games were held.

The matter in question is how long do the regulations for production of ferrosilicon in North West area of China continues. The authorities concerned have specified that the regulations will be effective for the period of September to December of this year. However, in order to accord with the instructions from the Central Government of China, the provinces concerned have already prepared the spare measures and are watching carefully about an issue of the negotiations. An outlook for this matter has contained many unclear parts but the production of ferrosilicon in China in this year is anticipated to continue on a low operation rate of 30% to 40%.

(Sourced from TEX Report Limited)