[Ferro-Alloys.com]Spot offers of 75% Si ferrosilicon in Asia remained mixed this week with Chinese export indications dipping while Japanese import offers rose, reversing the fall seen previously, industry sources said Thursday.

 

Chinese 75% Si ferrosilicon was assessed at $1,100-$1,140/mt FOB China Thursday, down from $1,100-$1,150/mt last week on lower indications heard in view of softer domestic offers.

 

Meanwhile, the Japanese spot import price assessment rose to $960-$980/mt CIF Japan Thursday from $940-$980/mt CIF Japan a week ago as supplies of Chinese ferrosilicon exported via Southeast Asia without 25% export tax payment run low following output cuts in China.

 

Indirect shipments of Chinese material via Southeast Asia have dampened direct export trades from China as such shipments avoid the 25% export tax imposed by China.

"Despite the floor price set by two major Chinese ferrosilicon producers at Yuan 5,000-5,200/mt ($770-$800/mt) ex works two weeks ago, most market indications were heard at Yuan 4,800/mt ex works this week. There are not many buyers as most are still adopting a 'wait-and-see' attitude. Export offers are probably above $1,050/mt FOB China," said a northwest China-based end-user.

 

Two northwest China-based traders and a northeast China-based trader agreed that domestic offers had slipped.

 

"Domestic offers have dropped by around Yuan 300/mt. This week, we are offering at Yuan 5,100-5,200/mt, delivered to Qingdao port or Lianyungang, down from Yuan 5,400-5,500/mt last week. Buyers are not keen to buy at the moment due to the uncertainty in the price trend. Export offers are around $1,150/mt and I have not received many inquiries. The overseas demand is still quite weak," added one of the northwestern Chinese traders.

 

The other northwestern Chinese trader, who had held back his offers last week due to the uncertainty of the two major producers-led floor price at Yuan 5,000-5,200/mt ex-works, said he had resumed offering this week and indicated at Yuan 4,900/mt ex-works.

 

"Export offers are probably at $1,130-$1,150/mt FOB China. However, I have no overseas inquiries. Buyers are cautious and they are buying Malaysian and Russian materials which are $50-$100/mt cheaper than the Chinese grade," added this second northwestern Chinese trader.

 

The northeastern Chinese trader said some steel plants had enough stocks to use in the second quarter as their operating rates were low in the first quarter due to the Lunar New Year holiday.

 

In Japan, a source close to a producer said there were requests for offers from traders handling untaxed Chinese ferrosilicon who have delivery commitments but have not been able to secure enough supplies from China.