largest ferrosilicon producer, Erdos Metallurgy Group Co. Ltd.,
expects local ferrosilicon prices to remain firm until the
Chinese New Year in February.
"Tight supply and improved
demand from the steel sector are the major support for the
market before the Chinese New Year," said Qi Biao, general
manager of the Ordos City-based companys sales group,
Erdos Xijin Kuangye Co. Ltd.
Chinese ferrosilicon prices have
strenghtened as higher prices from steel mills buoy
"I think domestic prices could
still see some upward room of around 100 to 200 yuan ($16 to
$32) per tonne," Qi told AMM sister publication
Metal Bulletin on the sidelines of an industry
conference in Hainan, China, over the weekend.
The average operating rate of
local ferrosilicon smelters was around 50 percent this year due
to an oversupplied market, Qi said, but steel mills
ferrosilicon inventories are low.
Steelmakers raised prices
recently after an uptick in demand. Domestic ferrosilicon is
changing hands at 6,200 to 6,250 yuan ($994 to $1,002) per
tonne, up 350 to 400 yuan ($56 to $64) from early November.
Mainstream export deals are
likely to hit $1,350 to $1,360 per tonne f.o.b., around 1.9
percent higher than the current level of $1,330.
Erdos is expected to produce 700,000 to 720,000 tonnes of
ferrosilicon in 2012, up around 11 percent from 640,000 tonnes
A version of this article was first
published by AMM sister publication Metal