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[Ferro-alloy.com] The price range for 75%-Si ferrosilicon in Asia widened this week as competition for a buy tender in Japan pulled down spot prices.
The spot import price into Japan was assessed at $1,360-1,410/mt CIF Japan Thursday, compared with $1,390-1,410/mt CIF last week. The Chinese spot price was assessed at $1,350-1,400/mt FOB China Thursday, compared with $1,380-1,400/mt FOB last week.
Last Friday, a Japanese integrated steelmaker closed a buy tender for a total of more than 10,000 mt of ferrosilicon for loading in the next several months starting in November. The move fueled competition in a market that typically turns lackluster at the end of the month.
Tender participants said the award level was $1,300-1,330/mt CIF Japan, but this could not be confirmed.
"The tender has put downward pressure on spot prices, as buyers started to bid $1,310-1,320/mt CIF Japan," said one seller source.
A deal for 400 mt was reported this week at $1,360/mt CIF Japan for November loading from China. No other deals could be confirmed.
A Hong Kong trader had offered 120 mt at $1,380/mt FOB to a buyer in the Middle East for loading in late November from Tianjin. The trader said he was willing to accept $1,360/mt FOB if the buyer returned with a firm bid.
Chinese suppliers said trading turned quiet this week, compared with the past few weeks that saw more inquiries from the US. Sources said most US steel producers and traders were not buying this week because of an industry conference.
Some market watchers expect this week's dip to be temporary. Some sellers resisted deals below $1,400/mt CIF Japan, said Japanese sources.
Offers from Chinese sellers were heard at $1,380-1,420/mt FOB, while Japanese sources reported offers from Chinese producers at $1,390-1,430/mt CIF Japan this week. The seller offering $1,430/mt CIF Japan told buyers the company had sold out cargoes for November loading, leaving only December loadings available.
Some Chinese sellers don't have much supplies and Chinese domestic demand has been stable. Supplies typically become thin at the end of the year," said one Tokyo-based trader.
Chinese suppliers also maintained that domestic demand remained strong in China as local steelmakers continued to stock up for winter production, and at the same time, they expect demand from the US to remain strong due to ongoing investigations into alleged dumping of Russia- and Venezuela-origin ferrosilicon, which had led US buyers to seek supply from alternative sources.
Chinese domestic transacted prices at Tianjin port were unchanged week on week at Yuan 6,700-6,800/mt ($1,093-1,109/mt) Thursday.
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- [Editor:editor]
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