After WISCO, TISCO and Magang Group completed procurement of ferrosilicon 72# for August deliveries, this week more steel mills such as Minmetals Yingkou Medium Plate, Jiangsu Shagang Group, Valin LY Steel and HBIS started bidding for FeSi72# for August deliveries, with purchase volume being 800 mt,2,400 mt,620 mt and 3,060 mt, respectively. The purchase prices of ferrosilicon 72# were as follows: WISCO RMB6,250/mt（USD1,020/mt, export duty not included）and Magang Group tentatively RMB6,200/mt (USD1,012/mt, export duty not included), delivered price by acceptance; TISCO RMB6,010/mt (USD981/mt, export duty not included), delivered price(in cash).All were RMB30/mt lower than July purchase price. Ferrosilicon producers were much concerned with HBIS'purchase price of FeSi 72# for August deliveries and the purchase price would be released within this week, likely to be slightly reduced.
At present the mainstream FeSi75# was quoted at RMB5,900-5,950/mt(USD963-971/mt, export duty not included), highest quotation being RMB6,000/mt(USD979/mt, export duty excluded);FeSi72# was quoted at RMB5,700-5,750/mt (USD930-938/mt, export duty not included), highest quotation being RMB5,800(USD947/mt, export duty not included), ex-work tax-inclusive price by acceptance. Most of ferrosilicon producers held low inventory and ran at 40% capacity.
Though steel mills reduced purchase price of ferrosilicon, ferrosilicon producers would probably insist their present quotations, as a result of low rate of operation and inventory.