Spot offers for 75% Si ferrosilicon rose this week as Chinese offers rose on stable Chinese domestic demand which has depleted stocks and reduced availability, industry sources said Thursday.
The Chinese yuan had strengthened against the dollar this week, giving FOB China offers a lift, the sources added.
The dollar was trading at Yuan 6.794 Thursday, compared with Yuan 6.8197 last Thursday.
S&P Global Platts lifted the Chinese 75% Si ferrosilicon price assessment to $1,130-$1,170/mt FOB China Thursday, up from $1,120-$1,160/mt last week.
Platts assessed the Japanese spot ferrosilicon CIF price at $1,200-$1,230/mt CIF Japan, up from $1,130-$1,170/mt CIF Japan last week.
"FOB offers are up this week. I'm offering at $1,170/mt FOB, up from $1,160/mt last week. The supply is still tight as plants' stocks remain low. Ex-work offers are steady at Yuan 5,600-5,700/mt ($826-$841/mt) and delivered to Tianjin port offers are also steady around Yuan 6,000/mt. However, the yuan is up, lifting the FOB offer," said a northwest China-based trader.
Chinese ferrosilicon exports are subject to a 20% export tax.
Another northwest China-based trader agreed but kept his offers steady at $1,150/mt FOB, while a northwest China-based producer, who produces for his own consumption, reckoned FOB offers should be higher this week due to the stronger yuan despite steady ex-works offers around Yuan 5,800/mt.
A Southeast Asian trader and a South Korean trader also heard that supply was generally tight in the market.
The South Korean said mainstream market offers were around $1,170/mt FOB.
Japan's electric arc furnace steelmakers agreed with suppliers to set July or July-September purchase prices at Yen 131-132/kg delivered, which comes to around $1,180-$1,200/mt CIF, the traders said.
Russian and Malaysian offers were not heard in the spot market.
"I am seeing $1,200/mt CIF Japan as a tradable level," said a Japanese producer source who was not offering spot.
