[Ferro-alloys.com] Till the end of the first month in early September, quite a few large steel mills had set their purchase prices of ferrosilicon for September delivery, with coexistences of raising prices and flat prices. The waste heat power generation projects were in hot construction among the ferrosilicon smelters of a very large Qinghai-based ferrosilicon group and some Ningxia Hui-based producers were with more furnaces into operation. The main stream ex-work tax-inclusive prices remained steady, with FeSi75# being RMB5,850-5,950/mt(USD953-969/mt) and FeSi72# being RMB5,550-5,650/mt(USD904-920/mt).

Export market ran low this week. Foreign ferrosilicon buyers tried hard to slash the purchase price. Export price of ferrosilicon ranged from the lowest of USD1,350/mt to the highest of USD1,400/mt FOB at Tianjin port. Roundabout low-priced Chinese ferrosilicon materials were seen in the tenders offered by Japan and South Korean consumers.

FeSi75# remained €1,120-1,150/mt in European markets and 98-100 cents/lb in US market. Ex-work price of FeSi75# was Rs76,000/mt (USD1,258/mt) in Guwahati, Due to stronger demand from Indian steel mills and foundry plants, India and ex-work price of Bhutan FeSi75# rose to Rs 78,000/mt (   USD1,291/mt). Export prices from Bhutan to Germany and Italy remained USD1,390-1,400/mt CIF.  Contract prices of FeSi75# declined to USD1,360-1,380/mt CIF at Japanese ports. FeSi75# was USD1,250-1,300/mt in South Korea.

Analysis: Qinghai-based ferrosilicon producers were likely to become affected by waste heat power generation and Ningxia Hui-based producers were likely to increase furnaces into operation. FeSi prices were expected to enjoy slight increase in mid September in China.

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• [Editor:Phillip.Feng]