MethodologyContact usLogin
Chinese prices rise as availability falls Chinese ferro-silicon prices climbed further last week amid persistently low availability of 75% silicon content alloy.
China’s domestic spot ferro-silicon price, basis 75% silicon, increased to 6,400-6,600 yuan ($966-996) per tonne on Friday October 20, from 6,300-6,500 yuan a week before.
Refineries in China are having trouble obtaining supplies of key raw materials, such as semi-coke, due to environmental crackdowns on pollution. As a result, ferro-silicon operations are being disrupted.
“Ferro-silicon with 75% silicon content is mostly exported [but] it only accounts for a small share of overall trading. [So] refineries intend to produce alloys with 72% silicon,” a producer said.
Operations at a major producer in Northern China are also being disrupted by power supply problems, sources told Metal Bulletin.
In terms of futures prices, the most actively traded January ferro-silicon contract on the Zhengzhou Commodity Exchange (ZCE) closed at 6,370 yuan per tonne on Friday, compared with 5,996 yuan on October 13.
The Chinese ferro-silicon export price increased to $1,300-1,320 per tonne on October 20, from $1,280-1,300 per tonne.
“Ferro-silicon prices in the USA and Europe are moving upward, which has attracted sales from countries other than China,” a producer said.
“With less supply in the global market, Japan and South Korea will buy alloy from China,” he added. “Chinese offer prices are more competitive at present.”
US market losses continue The US ferro-silicon spot market edged downward last week, extending the losses seen the week before while consumers appear content, for the most part, to rely on long-term contracted business.
Spot prices for ferro-silicon moved to $0.96-0.98 per lb on October 19, from $0.97-1.00 per lb previously, according to Metal Bulletin sister publication AMM’s latest price assessment.
Suppliers and consumers are working mostly on delivery settlements for 2018, with quarterly contracts a priority. Dealers have mixed views about the likely price direction in the near term.
While some traders are pushing for lower prices, others see limited downside.
“When you are looking at replacement costs in the lower 90s [US cents per lb], it would make sense for prices to level-off near that range,” a supplier source said.
“I could see maybe a cent or two lower,” he added, noting that higher losses were unlikely in the near future.
European market remains stable The European ferro-silicon market was steady last week, extending a period of stability from the week before while suppliers held their offer prices.
The lower end of the current spot price range of €1,300 ($1,531) per tonne is proving to be a psychological level that suppliers are so far refusing to move below.
European ferro-silicon prices were last assessed at €1,300-1,400 per tonne. The spot market jumped by 25% in August and most of September, at one stage late last month hitting a peak of €1,525 per tonne, before dropping in line with consumer buying interest.
This article was updated at 02:00 BST on October 24 to add in the price table for global ferro-silicon and silicon prices. The price table for ferro-chrome and chrome ore had erroneously been published in its place.