Spot offers of 75%-Si ferrosilicon in Asia were mixed as Japanese sources said competition to win long term contracts had pushed down prices, while Chinese sources said offers were steady on the lack of trading interest after the week-long Lunar New Year holiday which officially ended on February 13.
Chinese 75%-Si ferrosilicon was assessed at $950-$1,010/mt CIF Japan Thursday, down from $1,000-$1,010/mt a week ago but steady at $1,000-$1,010/mt FOB China.
Japanese traders and overseas suppliers are in talks with Japanese steelmakers for April 2016-March 2017 contracts. Non-Chinese producers are targeting larger market shares, as supplies of untaxed Chinese ferrosilicon shipped from Southeast Asia have thinned due to stricter border controls, traders said.
Indirect shipments of Chinese material via Southeast Asia had dampened direct export trades from China as such shipments avoid the 25% export tax imposed by China.
There was no spot trade this week but one Japanese producer said deals at $950/mt CIF Japan were possible. Offers from China were at $1,050-1,100/mt CIF Japan, rising by $50/mt compared to levels before the Lunar New Year holidays, said one Japanese trader.
Two other Japanese traders said untaxed Chinese ferrosilicon was offered at $950-$970/mt CIF Japan.
Meanwhile, a northwest China-based trader, a northeast China-based trader, a northwest China-based end user and a south China-based trader said offers were generally steady this week, flat from last week.
"The market is quiet as some are not back from the holiday. Offers should be the same as before the holiday," said a northwest China-based trader, who said offers were steady at Yuan 5,000/mt ($767/mt), delivered to Qingdao port and $1,120-1,130/mt FOB China.
The northwestern Chinese end user and the southern Chinese trader were not optimistic about the ferrosilicon market.
"The supply is tight but demand is weak," said the southern Chinese trader, who estimated offers to be steady at $1,010-$1,020/mt FOB China.
