Tokyo — S&P Global Platts assessed spot price of ferrosilicon imports into Japan at $1,750-$1,800/mt CIF Japan Thursday, up 22% from $1,440-$1,470/mt CIF Japan a week ago following the government-ordered output cuts in Ningxia, China.
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Earlier in the week, a major Chinese producer was offering $1,750-$1,790/mt CIF Japan to a Japanese trader, January loading from Tianjin.
The offer was for a limited volume of 200-300 mt. The deal was heard done at $1,750/mt CIF Japan for 200 mt for January loading.
The producer's spot supplies appeared to be sold off as offers were no longer heard Thursday. Other Chinese producers and traders were offering $2,000-$2,300/mt CIF Japan.
"Domestic Chinese prices are $1,800/mt, and with the 20% export tax, the export price comes to over $2,000/mt," one Japanese trader said.
"$1,750/mt is the level I think many buyers and sellers would agree at," another producer noted.
"Although supplies are short, prices that went up too fast will come down fast. Also higher prices will attract more sellers. So buyers are cautious," the Japanese trader said.
Some of the Chinese producers outside of Ningxia and Malaysian producers have suspended spot offers too.
Russian producers are not active in the Asian spot market since weeks before the Ningxia cuts as their supplies are limited.
One producer, holding a small amount of supply for January loading, was monitoring the market trend before making any moves, a company source said.
Sources noted that Japanese buyers were also exploring possibilities to import from Bhutan, Norway, India, and Brazil.