Spot prices of 75%-Si ferrosilicon in Asia this week remained supported by tighter supply and improved demand among some exporters in China.
Platts assessed the Chinese spot price at $1,330-1,370/mt FOB China Thursday, slightly higher than $1,330-1,360/mt FOB a week ago.
Japan's spot price of ferrosilicon imports were assessed at $1,350-1,380/mt CIF Japan Thursday, unchanged from the previous week. The Japan assessment takes into account ferrosilicon of all origins.
This week, a Beijing-based trader made deals ranging from 100-1,000 mt at $1,350-1,360/mt FOB with buyers in Southeast Asia and the US, loading in mid-July in Tianjin, while a Gansu-based trader concluded deals of at least 100 mt at around $1,370/mt FOB with buyers in Southeast Asia, Japan and South Korea, July loading from Tianjin.
Other sources had pegged the tradable price at $1,330-1,350/mt FOB. In Japan, trade was thin due to absence of buy tenders and prices were holding steady, Japanese traders said. One Japanese trader reported buying over 300 mt of ferrosilicon of Russian ferrosilicon at $1,380/mt CFR Japan, July-August loading.
A Chinese producer offer was reported at $1,340/mt CFR Japan. Platts did not take into account this offer as it could not be confirmed with the trade counterparty. Price differences between CFR and CIF are negligible, according to sources.
Supply has tightened in China due to production cuts among ferrosilicon producers, which are making losses at current price levels, said sources.
Limited availability of non-export tax-paid China-origin ferrosilicon in the market has also boosted supply for legal exports, they added.
A few traders also noted of tighter shipping from Tianjin as some shipping firms, which are experiencing good businesses are rejecting transporting ferrosilicon. Ferrosilicon is shipped as "dangerous goods" in China and shippers prefer to transport normal goods in times of good demand, they said.
"We couldn't offer for this week as we could not secure shipping services," said a second Gansu-based trader, noting that she had been rejected a few times by shipping firms in the recent 2-3 weeks.
NON-EXPORT TAX-PAID MATERIAL
Meanwhile spot offers for the non-export tax-paid Chinese-origin material were reported at $1,260-1,280/mt FOB Haiphong in Vietnam this week. Transport from Nanning to Haiphong was easier this month, thanks to clear weather and smooth customs clearance, said a source at a trading house with multiple offices in Southeast Asia. Supplies have become limited though, added the trader.
Before April, people crossing the China-Vietnam border were allowed to carry with them cargoes of up to 1 mt, but currently, luggage was limited to 40 kg.
"This means 25 people to carry one mt of ferrosilicon, more manpower required," he said.
Profit from such operations was around 1% of the revenue, he added.
China has a 25% export tax on ferrosilicon.
Chinese domestic ferrosilicon prices at Tianjin port were at Yuan 6,200-6,300/mt ($1,006-1,022/mt) Thursday, unchanged on the week.
