The intensive investigation about the roundabout exports from China through Vietnam and Taiwan is going on. In response to the authority's pressure, several major Chinese ferrosilicon producers had a meeting in Tianjin earlier this month and will have another one in mid-June to ensure orderly exports duly observing the laws. As a matter of fact, the investigation has become extensive also, i.e. over exports of other commodities than ferrosilicon. Nevertheless, there seem some ferrosilicon offers for Japan of small quantity through the roundabout route at US$1,370 - 1,390/ton CIF, compared to US$1,400 - 1,420/ton CIF shipped from Tianjin - through the official channel. The impact of the reappearance of a bit lower prices through the unofficial route is not small, as consumers of course base their purchasing price on the low offers in the market. For reference the current operational rate of ferrosilicon production in Ningxia is still 50%, while that in overall China is 60%.
Quotations for Imported FeSi in Japan on May 31
Item
|
Export Quotes (US$ CIF Japan)
|
Local Quotes(Yen, Delivered)
|
Shipments
|
Contract Levels (US$ CIF Japan)
|
FeSi 75#
|
Spot Chinese $1,420-1,440
|
128,155-129,928
|
Jun.-Jul.
|
Chinese $1,400
|
Spot Others $1,370-1,390
|
125,494-127,268
|
Jun.-Jul.
|
$1,370-1,390
|
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