US Fesi  market slips,but expected to improve

Ferro-alloys.com: The US ferro-silicon spot market slipped to 75-79 cents/lb (usd1240-1306/mt)on April 7, down 1.3% from 76-80 cents.Spot market activity slowed last week as the majority of steel mills have completed their ferro-silicon intake needs for second-quarter business. The virtual lack of spot market demand from steel mills has prompted more aggressive offer prices from ferro-silicon traders and suppliers to secure deals. 

?Some suppliers in USA complained that Fesi price in USA is lower than other markets, it is stranged that we are frustrated with the weaker price trend because of strengthening replacement costs from overseas suppliers. but we expected the price should be 80cents(usd1340/mt) for 75% grade, and this lower price can not be last longer. even Chinese Fesi price now offered usd1200-1230/mt fob, and China is major supplier of fesi to USA market.

However, steelmaker demand has been limited, dealers have noted an increase in inter-merchant interest in the ferro-silicon market, which suggests that current US ferro-silicon inventories may be at a low level. 

A  supplier source believes this is because either there is a shortage in supply or some traders have shorted the market. He added that he expected a market bounce in due course. 

Given stronger replacement costs from overseas, US dealers reckon domestic spot prices will recover in the near term. 
 Ferro-Alloys.com comments: If demands is not increased, supply side not reduced, price will not go up, but if Chinese price will not go down, Fesi price in USA market should be usd1330-1350/mt. excepted smagglng price from Taiwan, they offered usd100/mt less.

• [Editor:admin]