Spot offers of 553-grade 98.5% silicon metal in Asia climber further as Chinese suppliers raised their offers on limited available stocks in the market, industry sources said Thursday.
S&P Global Platts lifted the Chinese spot export price for 553-grade 98.5% silicon metal assessment to $2,080-$2,130/mt FOB China Thursday, up from $1,860-$1,930/mt a week ago.
The Japanese spot import price of 98.5% 553-grade silicon metal rose to $2,100-$2,150/mt CIF Japan Thursday from $1,880-$1,950/mt a week ago.
A north China-based producer indicated offers at Yuan 13,800-14,200/mt ($2,072-$2,132/mt) ex-works, up from Yuan 12,700-12,900/mt last week and $2,100-$2,130/mt FOB, up from $1,890-$1,920/mt last week.
An east China-based producer said he had not offered this week but heard market indications in excess of $2,100/mt FOB, up from $1,860-$1,930/mt last week.
"Yesterday, it was in excess of $2,000/mt FOB and today it has gone above $2,100/mt FOB. In addition to higher production cost and low stocks level in the market, some market participants might be holding back stocks," said an east China-based producer/trader, who heard offers in excess of $2,100/mt FOB.
An east China-based industry source agreed and noted the electrode price had jumped to Yuan 20,000/mt delivered to domestic plants, up sharply from less than Yuan 10,000/mt in the early part of the year.
He added that he had even heard offers as high as $2,200/mt FOB but reckoned $2,060-$2,070/mt to be a realistic tradable range.
"Some traders dare not quote as offers are very volatile," he said.
In Japan, three traders said they were offered $2,150/mt CIF Japan for September loading, and two said they had no choice but to accept the offer.
One Japanese trader said his recent purchase was at $2,100/mt CIF Japan. The traders also said Chinese suppliers were limiting sales to maximum 100 mt volume.
Two secondary aluminum alloy smelters in Japan issued buy tenders this week, for around 1,500 mt in total for October-December, and around 500 mt for December. The award level was above $2,000/mt CIF Japan, said one trader.
