Ferrosilicon lost steam after rising above $2,000/mt CIF Japan last week as buyers waited for a price decline following news of some Chinese producers ramping up production.
S&P Global Platts assessed spot price of ferrosilicon imports into Japan at $1,680-$2,000/mt CIF Japan Thursday, down from $2,000-$2,300/mt CIF Japan a week ago. The assessment is for 75%-Si ferrosilicon.
The assessment was based on the two most competitive offers for the 75%-Si material. Data for other grades and domestic spot deals were also collected for references amid thin CIF deals.
Some Chinese traders lowered offers on the back of some Northeastern producers ramping up production. One offer to a Japanese buyer was confirmed at $1,680/mt CIF Japan for 500 mt for February loading from Tianjin. The Japanese buyer said he will accept.
The second most competitive offer was at $2,000/mt CIF Japan from Bhutan for March loading, but deals were not done. The Japanese buyer receiving the offer said that it was too risky to book when prices were volatile.
Spot supply continued to remain tight. Some Japanese steelmakers who were seeking January or January-March cargoes have not been able to satisfy their requirement. Japanese traders also said that they had either cut their quarterly sales volume or decided not to participate in the mill buy tenders at all.
"I could supply only 100 mt or so to a mill who buys 500 mt/month," one Japanese trader, who sold his inventory at Yen 210/kg delivered ($1,800/mt CIF Japan), said.
The mill, who buys monthly via tenders, decided to source for January-March last week.
A second Japanese trader said that another mill bought 100-150 mt for January delivery at Yen 193/kg delivered, or $1,600/mt CIF Japan. He said that this award level may not reflect the import market.
Most Chinese, Malaysian and Russian producers, who regularly supply to Japan, continued to suspend offers this week.
One producer said that his indicative offer for 75%-Si material was at $2,100-$2,200/mt CIF Japan for February loading, as sales to the rest of Asia were at this level for a few container loads.
Offers for 70%-74%-Si material were heard at $1,500-$1,750/mt CIF Japan, or normalized to 75%-Si material at $1,600-$2,000/mt CIF Japan.
70%-Si ferrosilicon of Bhutan origin was offered at $1,500/mt CIF Japan, normalized at $1,600/mt CIF Japan for March loading.
73%-74% material of Egyptian origin was offered at $1,750/mt CIF Japan, normalized at $1,800/mt CIF Japan, for March loading.
Meanwhile, several silicon metal traders said that they have received interests for a few containers from other traders of steelmaking raw material but buyers decided not to buy.
553-grade 98.5%-Si silicon metal traded at $1,850-$1,900/mt CIF Japan this week.
Some Japanese steelmakers are seeing a possible price decline in ferrosilicon and are buying neither ferrosilicon nor silicon metal, traders said.
"The buyers and sellers are playing a waiting game," a second Japanese trader said.
One producer said that the decline in prices was only a minor correction and prices were expected to rise again.
