[Ferro-Alloys.com] In early November, gloomy cast in the mood of ferrosilicon participants as the biggest purchaser slow down bidding schedule and failed to unveil result. In fact, low demand and capital pressure also gave rise to chaos quotation for ferrosilicon. It is said that ferrosilicon 75#price in northwest of China dropped around RMB4,400-4,500/mt by the end of October while RMB4,100-4,200/mt for 72#.

Shrinking demand make ferrosilicon producers suffered heavy loss, resulting in shutdown for ferrosilicon factories on the increase further. It is said that some producers in Inner Mongolia focused on output control, while situation become worse in Zhongwei area of Ningxia. According to the related enterprises, local government in Ningxia are engaging in consultation with the factories to encourage them to start production, but considering most of factories with 45000 KVA furnace, it would be not easy for resuming production in short term.

As for export, price of ferrosilicon 75# quoted at USD1,130-1,160/mt while USD1,100-1,120/mt for 72#. Fewer inquiries with cheap price set to both sides hard to make a deal. Apart from that, smuggling also disrupted export market.

In short, it is said that the biggest purchaser in Hebei finally released tender price on ferrosilicon with RMB4,350/mt for 72#, a decreasing of RMB450/mt from October, which further wane ferrosilicon participants confidence on future market. Prices will rebound when hit the bottom, but how many ferrosilicon companies can laugh the last？

Copyright © 2015 Ferro-Alloys.Com. All Rights Reserved. Please write to jiangyitao@ferro-alloys.com for help.

• [Editor:Sophie]