• European market slips again ahead of summer slowdown
• European prices threatened by imports from Malaysia
• Chinese production cutbacks yield higher domestic prices
• US market remains propped up by inventory limitations
European market slides again
The European ferro-silicon market has edged down again in the
past week, dropping as heavy industries in the northern
hemisphere near their seasonal slowdown summer months of July
Most market dealers are looking to sell alloy ahead of the next
two months when steelmakers traditionally cut or shut
production to do repairs and maintenance at their plants.
Ferro-silicon producers, however, appear to be planning to run
at full production through the third quarter and there has been
a steady rate of imports from Malaysia.
Stainless steel producers have also been cautioned on a steady
run lower in chrome ore and ferro-chrome prices in the current
quarter, as well as fall in world nickel prices.
Cash nickel prices on the London Metal Exchange have fallen to
around $8,800 per tonne at present, from around $10,400 per
tonne at the start of April.
Metal Bulletin’s price quotation for ferro-silicon delivered in
dropped to €1,220-1,270 ($1,364-1,420) per
tonne on Friday June 16, down €10 from €1,230-1,280
per tonne previously.
One major consumer reported a deal for 300 tonnes of standard
grade ferro-silicon at €1,250 per tonne delivered in June.
However, the same consumer has been offered ferro-silicon for
below €1,200 per tonne delivered in August, a
traditionally slow month for business activity in Europe.
One supplier appears to be bucking the trend, holding steadfast
with offers on either side of €1,300 per tonne delivered
in the near term, but the overall market sentiment is bearish
heading into what is typically a low point in terms of demand
in the calendar year.
Other suppliers were commonly looking to offer ferro-silicon at
around €1,240-1,260 per tonne delivered in coming days.
Chinese prices edge up on thin stocks
The Chinese ferro-silicon spot market moved slightly up this
week after smelters raised offers on tight supply combined with
Metal Bulletin’s ferro-silicon price in China’s
was at 5,550-5,650 yuan ($815-829) per tonne on
Friday, up 50 yuan from a week ago. The fob price
was stable at $1,120-1,150 per
tonne on the day.
"Ferro-silicon demand from mills is not bad, while
simultaneously supply remains tight as overall production is
not large because previous low prices pushed some smelters to
reduce production and others shut down due to environmental
checks in the major production base of Inner Mongolia," one
producer in China said.
US market holds amid third quarter RFQs
The US ferro-silicon market held up once again last week amid
continuing third-quarter and second-half negotiations.
Spot prices for ferro-silicon
steadily at 81-85 cents per lb on June 15, unchanged for the
third consecutive week, according to Metal Bulletin sister
publication AMM’s latest assessment.
Although not as active as the previous week, market
participants continued to engage in third-quarter and
Through these negotiations, prices have solidified above 80
cents per lb, sources said.
"There are still some people out that we are waiting for
feedback on, but one thing is for sure thus far, you have to be
selling at the least at 81 [cents per lb]," a supplier source
told AMM. "You can’t afford not to at this point."
Current stocks of ferro-silicon have remained thin, forcing
many to restock at higher prices.
"You are seeing more and more that there isn’t
really much cheap material around anymore, and replacement
costs put you at least at 80 cents," a second supplier source