News and Events

Ferrosilicon prices in Europe and US on rising trend

TEX reported that the troubles in production of ferrosilicon in China were once looked on a fire unconcernedly but the prices of ferrosilicon in Europe and the USA are now moving. Spot price of ferrosilicon with Si 75% minimum in the USA has risen to USD 1.20 per pound of Si in this week and that in Europe has also risen to EUR 1,800 per tonne of material on DDP base.

A leading producer of ferrosilicon in Russia, which is a major source to import ferrosilicon into Japan, is now offering this ferroalloy at USD 1,950 per tonne of material CIF Japan, having had a steep rise from that of USD 1,600 CIF offered by the end of last week.

Chinese ferrosilicon has been just in the middle of a storm and the market in Japan is in the mood to purchase Chinese ferrosilicon at USD 1,800 per tonne CIF Japan as offered by exporters in Huanan district, where has escaped from the stoppage of this production.

The trading companies, which import ferrosilicon from China and have in advance obtained an information to suspend the production of ferrosilicon in China, are wondered how extent are they able to keep the deliveries at low prices as contracted. This is an anxious matter for the parties concerned, because price of Chinese ferrosilicon has risen to a considerable extent for a short period.

Inner Mongolia Autonomous Region is the largest base in China to produce ferrosilicon but it was known on the beginning of this week that even this Autonomous Region will be regulated their production of ferrosilicon. There is a strong opinion in the market that the supply of electric power to this district may be suspended, and the Government of Inner Mongolia Autonomous Region is anticipated to deliver a notification of this subject to the parties concerned in the next 2 to 3 days. Reflecting this trigger, price of Chinese ferrosilicon has risen steeply. The investigation to regulate exhaust of carbon dioxide will be implemented in a period of September to December 2010 period.

The USA has diversified the sources to import ferrosilicon and enlarged them to Canada, Brazil, Venezuela, Russia, and so on but the quantity of ferrosilicon imported from China into the USA is not negligible. Also, the USA has been importing ferrosilicon from Norway (Iceland), Spain, Russia and so on as traditional sources but the case to import ferrosilicon from China into the USA will put a substantial impact on the US market.

Under the circumstances, price of ferrosilicon in the USA has had an explosive rise from the beginning of this week. The price of ferrosilicon in the US market prevailed in last week was USD 1.07 to USD 1.10 per pound of Si. The USA and India have purchased large quantities of ferrosilicon from Russia in last week, because the steady deliveries from Russia are expected, but these cargoes are still on the voyage and not stored yet at their warehouses.

(Sourced from TEX Report Limited)