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US FeSi Prices Slide

  • Wednesday, November 6, 2013
  • Source:

  • Keywords:FeSi,Ferrosilicon,Price,US
[Fellow]
[Ferro-alloy.com] Prices for standard grade ferrosilicon dipped this week on the heels of several spot transactions ranging 100-200 tons, and currently hold at 98-102cents per lb, ex warehouse. Market respondents felt that increasing imports from China and less of a concern over supply due to the Russian and Venezuelan anti-dumping case have created more competition among suppliers and even less urgency among buyers. One participant responded, “I think buyers have realized that they are going to get their material regardless, and they will not have to necessarily buy off of the trade.” August imports from China were double at 2,224 mt, up from 1,059 mt in July. In addition, August imports from Russia were 14,282 mt, and Canada and Hong Kong each registered increases for the month. September trade data will be posted to the ITC website on November 15.
 
Spot transactions have subsided over the past two weeks, although several large mills will be out with RFQs beginning next week. Some suppliers with large positions are much more likely to negotiate at this time given potential pressure to increase cash position and reduce inventory before the close of the year. One US-based buyer reported a purchase at 90 cents per lb for Chinese FeSi, standard grade, common specs. While the transaction was verified across market participants, it remains an outlier from where the majority of transactions are taking place at this time. Some foundries, on the other hand, have reportedly settled at 109cents per lb, reflecting an extreme high. “I can sell gold at $900 an ounce, but that does not mean that is where the market is,” one analyst offered.
  • [Editor:editor]

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