Spot offers for 75% Si ferrosilicon in Asia were steady with low Chinese demand this week.
The Chinese 75% Si ferrosilicon price assessment was flat from last week at $980-$1,020, FOB China. Meanwhile, Platts assessed the spot import price of 75%-grade ferrosilicon at $920-$970/mt CIF Japan Thursday, flat from last week.
In China, it is a bleak market for ferrosilicon as both demand and supply are down. "Now the ferrosilicon market is so bad, you can't sell it. Many plants have been closed, and steelmakers are buying less (material) as well," said one Northwest China-based trader, citing prices at $1,000/mt, FOB China.
"Overall (ferrosilicon) production in China is very poor," said another Northwest China-based trader, adding that domestic as well as foreign demand for Chinese material is slow. "If demand gets worse, we will see more plants closing," he said.
One Northwest China based producer said Russian prices were simply too low to compete with. "They are quoting prices that are $100 less than mine," he said. His prices are at $1,040-$1,050/mt.
Meanwhile, sources reported an active market in Japan as smuggled supplies remain scarce. A specialty steelmaker in central Japan has closed a buy tender Tuesday for around 3,000 mt in total for October-December delivery.
Japanese traders said they were waiting for tender results before making the next moves. Price levels were unchanged from last week, with offers from Russia heard below $950/mt CIF Japan, while those from China were at $980-$1,020/mt CIF Japan.
Although offers from overseas were unchanged on the week, domestic spot prices rose, said a second Japanese trader.
"I am hearing Yen 110-120/kg ($1,030-1.120/mt) delivered", he said, adding that this may be due to the drop in supplies of smuggled Chinese ferrosilicon.
"Some buyers could not find supplies for delivery by end of July, so they were forced to pay more to buy from traders who kept stocks in the country," he added.
A steelmaker source said he bought a few hundred mt a week ago at Yen 90-100/kg delivered.
