SHANGHAI Chinese ferrosilicon tags increased further this week as sentiment was buoyed by higher prices from steel mills.
Free-market spot prices of ferrosilicon with a minimum 75-percent silicon content were in a range of 6,200 to 6,250 yuan ($996 to $1,004) per tonne Wednesday, up 50 to 100 yuan ($8 to $16) from the end of last week.
Hebei Iron & Steel Group Co. Ltd., the countrys largest steel producer, raised its price for ferrosilicon with 72-percent silicon content for December delivery to 6,450 yuan ($1,036) per tonne, sources told AMM sister publication Metal Bulletin, up 200 yuan ($32) from Novembers level.
The latest prices from other major steel mills also were lifted by 200 yuan to around 6,500 to 6,550 yuan ($1,044 to $1,052) per tonne.
"Ferrosilicon producers are actively increasing offers in the current market environment," a trader in Ningxia said.
Offers from major production bases, such as Ningxia, Gansu, Qinghai and Inner Mongolia, have risen to a range of 6,200 to 6,300 yuan ($996 to $1,012) per tonne, up 100 yuan from last Friday, producer sources said.
The rise in local market prices also encouraged exporters to increase their offers, although this was offset by pale demand from overseas customers, and transaction levels for most cargoes remained in a range of $1,330 to $1,350 per tonne f.o.b. China, unchanged from last week.
"We are now offering at $1,360, but we can only get a small number of deals," a trader said from Inner Mongolia said. "Export buyers are not active."
Domestic prices are unlikely to see further gains after mills finish restocking, a Shanghai analyst said, although tight supply would keep levels stable.
A version of this article was first published by AMM sister publication Metal Bulletin.