Prices keep at USD1.04-1.06/lb at present, which has held for the past week approximately. The market experienced a slight drop of USD0.01/lb at the start of 2011.
The export market in China has experienced a steady decrease over the past 3-4 weeks as well as US distributors report receiving offers from Chinese suppliers at around USD1,500/t (USD0.90/lb) FOB China since late December. With price margins for Chinese material relatively slim at present, it is unlikely that any new deals with China will be booked until the market starts exhibiting positive price pressure again.
One large US-based ferrosilicon trader, who cited pricing at USD1.05-1.06/lb, had only seen light inquiries and truckload sales since the start of 2011.
“The market overall is very quiet right now,” the source said. “There are some inquiries here and there but activity is relatively slow compared to in Q3 and Q4 2010.”
Another US-based supplier brought up the issue of rising capacity utilization rates. According to the source, the current supply situation could not be sustained at 80% utilization rates or above.
“Capacity utilization rates are back up to 71%, but there isn’t enough [ferrosilicon] in the US to satisfy demand if rates hit 80%.If utilization rates keep increasing, there will be a big shortage of material,” the source said.
The trader, who last booked a small three truckload sale at USD1.05/lb earlier this week, indicated the current market at USD1.04-1.06/lb.
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