[Ferro-alloys.com]Although quite a few large steel mills had slightly raised their purchase prices of ferrosilicon for September delivery, the ferrosilicon producers were cautious about their offers. 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(USD954-970/mt) and FeSi72# being RMB5,550-5,650/mt(USD905-921/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. Statistics of Ningxia Entry-Exit Inspection and Quarantine Bureau showed 23,572 mt of ferrosilicon went through inspection in August, whose number was just 2,931 mt in August 2013.

FeSi75# remained €1,125-1,150/mt in European markets and 98-100 cents/lb in US market. In July 2014, the US reduced imports of ferrosilicon from China and Canada, but increased imports from Russia (14,250 mt). Ex-work price of FeSi75# rose to Rs76,500/mt (USD1,256/mt) in Guwahati, Ex-work price of Bhutan FeSi75# rose to Rs 78,500/mt (       USD1,289/mt). Export prices lowered to USD1,320/mt FOB at Kolkata port. 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: As the late September was on the way, newly built and expanded Ningxia-based ferrosilicon projects were expected to accelerate operation process and some Inner Mongolia-based FeNi producers were transforming to ferrosilicon, this would improve supply to some extent. 

• [Editor:Phillip.Feng]