Ferrosilicon prices across Asia have risen as Russian producers offered higher prices in Japan and Chinese domestic ferrosilicon prices continued to rise, even though this was not reflected in export prices.
The Chinese 75% Si ferrosilicon price assessment stayed flat at $1,050-$1,100/mt FOB China Thursday from a week earlier due to a lack of acceptance of high prices by international buyers. Japan's spot 75% Si ferrosilicon import price rose to $1,080-$1,120/mt CIF Japan Wednesday from $1,050-$1,100/mt CIF Japan last week as Russian producers raised offers.
In China, ferrosilicon prices continued to move up in the domestic market. Sources said tender prices for November are expected to push past Yuan 6,000/mt.
In October, Hebei Steel, whose tender is an indicator for the market, was heard to have settled its tender at Yuan 5,700/mt, delivery to plant.
One Northeast China-based steel mill buyer also told S&P Global Platts the company had settled its November tender for 72% Si material at Yuan 6,150/mt, delivery to plant.
Market participants also said rising raw material prices, such as coal and semi-coke, were pushing up ferrosilicon prices. A major explosion last week in Shaanxi, Northern China, near coal mines shortened an already tight supply of coal, leading to less availability of semi-coke, which is made from coal.
Sources said semi-coke supplies continued to stay high.
Chinese producers also told Platts they were no longer making offers outside China, as domestic prices were more attractive. They added that if they did, it would be at $1,200/mt, FOB China and above.
But one Taiwan-based steel mill buyer said he had heard offers for Chinese material for $1,000/mt, CIF Taiwan. He said he had recently purchased some low impurity, 75% Si material at $1,050/mt, CIF Taiwan.
He added that he believes Chinese ferrosilicon will be seen less and less in the market outside China.
"In the past, for Asia, it was China who was the price leader. China will no longer be the leader," he said, adding that Malaysian producers would play a bigger part in influencing Asian market prices.
In Japan, two Russian producers were offering $1,100-$1,120/mt CIF Japan for December loading. One producer has confirmed the $1,120/mt CIF Japan offer. Meanwhile, Japanese buyers said they saw a tradeable level at $1,050-$1,100/mt CIF Japan, but had not done deals.
The market was quiet this week awaiting for the result of an integrated steelmaker tender for 10,000 mt in total for a 10-month delivery period.
The tender has not yet closed and the result will be announced next week, said traders. The tender floats on a formula consisting of published price index minus discount rates, traders added.
