Chinese suppliers focus on domestic market, export price lower on yuan depreciation
Europe steadies losses, awaits outcome of industry conference
US market focuses on long-term deals
Fastmarkets assessed the Chinese ferro-silicon ex-works price, basis 75% Si, at 6,600-6,700 yuan ($949-963) per tonne on Friday.
“Domestic trading is still relatively healthy and we are focused on that,” a producer said. “The weakening yuan versus the dollar has caused export prices to fall, so we have decided to concentrate on selling domestically since there are no losses there incurred from exchange rates."
The depreciating yuan against the dollar is an increasing problem for producers who are focused on the export market. According to exchange website Oanda, the exchange rate on Tuesday November 13 was 6.96 yuan to the dollar, compared with 6.91 a few weeks before.
As a result, the Fastmarkets MB Chinese ferro-silicon export price fell $10 per tonne...