[Ferro-alloys.com] There were several large ferrosilicon furnaces ranging from 25,500KVA to 40,500KVA into operation in China’s Ningxia Hui Autonomous Region and local government enabled more ferrosilicon producers to enjoy preferential power prices in September. These factors lifted the overall operation rate of local ferrosilicon producers, resulting in more spot materials. Enough supply of ferrosilicon and poor steel market caused poor sales of ferrosilicon and market prices of ferrosilicon continued to dive much in China. The main stream ex-work tax-inclusive prices slightly declined, with FeSi75# being RMB5,700-5,800/mt(USD931-948/mt) and FeSi72# being RMB5,400-5,500/mt(USD882-899/mt). Export price of ferrosilicon ranged from the lowest of USD1,350/mt to the highest of USD1,400/mt FOB at Tianjin port. Exports of Chinese ferrosilicon were 43,781 mt in September 2014, with more volumes to US, less volumes to Japan and stable volumes to South Korea.

FeSi75# remained €1,110-1,145/mt in European markets and 96-99 cents/lb in US market. Demand was steady in India and ferrosilicon prices remained steady in Indian and Bhutan. Ex-work price of FeSi75# remained Rs76,500/mt (USD1,251/mt) in Guwahati, Ex-work price of Bhutan FeSi75# stayed at Rs 78,500/mt (    USD1,283mt). Export prices of FeSi70-75# remained USD1,320/mt FOB at Kolkata. Contract prices of FeSi75# remained USD1,360-1,380/mt CIF at Japanese ports. FeSi75# was USD1,250-1,300/mt in South Korea.

Analysis: Shagang Group released November purchase plan of ferrosilicon with 4,200 mt, slightly down from October 2014. 2014 APEC would cause many steel mills around Beijing to reduce or even suspend production in early November. Thus these steel mills were expected to reduce purchase volume for October delivery. November bidding price of FeSi bore much pressure in China.

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• [Editor:Phillip.Feng]