S&P Global Platts assessed the spot price of 75%-Si ferrosilicon at $1,410-$1,430/mt CIF Japan Thursday, up from $1,400-$1,420/mt a week ago. Chinese offers were heard in a wide range of $1,380-$1,500/mt CIF Japan this week amid divided market outlook.
Some Chinese producers and traders, seeing a possible decline in domestic ferrosilicon demand due to cutbacks in steel output, were quoting competitive offers below $1,400/mt CIF Japan, while those seeing stable demand were offering at as high as $1,500/mt CIF Japan.
The offers were for December loading, and volumes of 1,000-2,000 mt were available, a Japanese trader said. Meanwhile, offers from Malaysia were at $1,420-$1,430/mt CIF Japan, while Russian producers were not in the spot market, said the Japanese trader.
One Japanese steelmaker was heard awarding a buy tender this week at above $1,400/mt CIF Japan for January-March delivery, for a total of 2,000 mt.
Some Japanese buyers had lower expectations and were seeking at $1,300/mt CIF Japan, and were surprised to hear an offer as high as $1,500/mt CIF Japan, said a second Japanese trader.
A third Japanese trader said terms for the $1,380-$1,390/mt CIF Japan offers, however, were not standard offers, as some sellers were seeking advanced payments and a commitment from buyers to buy on a longer term.
Japanese demand is expected to pick up in the coming weeks as next week, electric arc furnace steelmakers will start negotiations for first-quarter supplies, said a fourth Japanese trader.
