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Spot offers of 75%-Si ferrosilicon in Asia were low weak demand, sources said Thursday.
Sources added that indirect shipments of Chinese material via Vietnam had continued to dampen trades directly from China. Shipments of Chinese material via Vietnam avoid China's 25% export tax.
Thursday's Chinese spot price assessment of 75%-Si ferrosilicon was $1,030-$1,050/mt FOB China, down from $1,050-$1,070/mt last week, while the Japanese spot import price remained at $1,020-$1,030/mt CIF Japan, unchanged from last week amid a year-end lull.
A south China-based trader heard offers at $1,020-$1,030/mt FOB, while a northwest China-based end-user heard offers around $1,050/mt FOB.
"The export market is bad as demand is extremely weak and offers continue to fall. I'm hearing offers at $1,020-$1,030/mt FOB, down from $1,050/mt last week. Offers via Vietnam have also slipped below $900/mt FOB from $900/mt due to weak demand," said the southern Chinese trader.
The northwest Chinese end-user heard domestic offers at Yuan 4,100/mt ($637/mt) ex-works, down slightly from last week due to tighter supply because of plants shutting down due to low prices.
"In fact, we have stopped our ferrosilicon production, which is meant for our own consumption. It's cheaper to buy now," the northwestern Chinese end-user added.
A north China-based trader, who heard offers around Yuan 4,600/mt, delivered to Lianyungang or Qingdao port, said: "The magnesium market is also not doing well, thereby dampening the demand for ferrosilicon." Ferrosilicon is used to manufacture prealloys such as magnesium ferrosilicon.
A northwest China-based trader said: "I'm offering at Yuan 4,800/mt, delivered to Lianyungang or Qingdao port, down Yuan 100/mt from last week. The demand is still bad. My FOB offers have also slipped to $1,100/mt FOB, from $1,150/mt last week as the yuan remains weak against the dollar."
The dollar was trading at Yuan 6.4236 Thursday, compared with Yuan 6.3982 last Thursday and Yuan 6.3896 two weeks ago.
Sources said they were also disappointed that the export tax on ferrosilicon in 2016 had remained unchanged from 2015 as this would mean that the indirect shipments via Vietnam would continue.
China's Ministry of Finance said Wednesday the country's export tax on ferrosilicon will remain at 25% in 2016, unchanged from the current level.
In Japan, one electric arc furnace operator was seeking several hundred tons for March delivery and there was no other activity, traders said.
A producer said he would offer at $1,020-$1,030/mt CIF Japan. Traders said Chinese-origin ferrosilicon shipped from Southeast Asia avoiding the 25% export tax was heard trading at around $900-$950/mt CIF Japan.(Source:Platts)
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