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
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
"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