Asia silicomanganese price poised to recover, ferrosilicon to track lower
Singapore — Silicomanganese and ferrosilicon prices in Asia were poised to move in different directions after being stable for about a month, with the manganese alloy set for recovery while ferrosilicon was likely to slide, market sources said Thursday.
S&P Global Platts assessed spot Chinese ferrosilicon at $1,280-$1,300/mt FOB China Thursday, down from $1,290-$1,300/mt FOB China a week ago, while the Japanese import price was at $1,270-$1,300/mt CIF Japan, compared to $1,280-$1,310/mt CIF Japan a week ago.
The Japanese silicomanganese import price was assessed at $1,080-$1,100/mt CIF Japan Thursday, unchanged from last week. But seller and buyer sources agreed that prices would likely hit a bottom next week. LACKLUSTER FERROSILICON TRADE Ferrosilicon trade was lackluster throughout Asia, Chinese seller sources said. One Chinese trader said he was offering $1,300-$1,350/mt FOB China, while a second trader was not in the market due to a lack of spot demand. He said the tradable level would be $1,280-$1,300/mt FOB China.
"The market in China is weaker than before but there is nothing to do, not paying attention," the second trader said.
A non-Chinese producer agreed that the ferrosilicon market in Asia was seeing some excess supply, but maintained that downside was limited.
A Japanese trader said an offer at $1,350/mt FOB China would be possible as he has been offered at $1,350/mt CIF Japan. He and others, however, said this was not a tradable level.
"In mid-October there was a spike in demand after the National Day holidays so there are high offers hanging," the Japanese trader said. In Japan, a deal was reported to have closed at $1,270/mt CIF Japan for 500 mt for loading in Tianjin in November.
An offer from one major Chinese producer, whose moves are closely followed in the market, was at $1,300/mt CIF Japan for November, a Japanese trader said. Others were offering at $1,320-$1,350/mt CIF Japan.
In the domestic Japanese market, a deal was reported this week at Yen 155/kg delivered, which is normalized at $1,250/mt CIF Japan. One trader familiar with the deal said this was for large sizes that are usually sold at a discount of $10-$20/mt. SILICOMANGANESE POISED TO RECOVER Silicomanganese appears to be heading up, sources said. "There are overseas traders selling old stocks at $1,080/mt CIF Japan," a Japanese trader said.
Another Japanese trader reported hearing a deal at $1,080-$1,090/mt CIF Southeast Asia for a seaborne cargo, which normalizes to $1,090-$1,100/mt CIF Japan after taking into account the $10/mt extra freight to Japan.
Trader stocks would run dry soon while producers have limited spot cargoes, the first Japanese trader said.
An Indian producer is offering $1,120/mt CIF Japan for November. Due to a rise in manganese ore prices and low producer stocks, offers below $1,100/mt CIF Japan would disappear soon, traders said.
"Some Indian producers said they have sold out for October and November shipments," the Japanese trader said.
OMH Price at posting:
$1.49 Sentiment: Buy Disclosure: Held
