Import orders for Chinese ferrosilicon scarce in Korean market

Stimulated by higher Chinese prices, the mainstream import price of ferrosilicon 75%min 10-50mm in the South Korean market is currently hovering at $1320-1350/tonne CIF Korea, up about $30/tonne from the beginning of last week, but the spot market saw few import orders last week. Industry sources predicted that the mainstream import price of Chinese ferrosilicon 75%min 10-50mm in the South Korean market will weaken this week due to increased supply from China.

A South Korean trader revealed that a regular Chinese supplier is currently offering $1,330/tonne CIF Busan for ferrosilicon 75%min 10-50mm without concessions, while the supplier accepted $1,300/tonne last Monday, but he has not purchased yet." Last Friday, my local customer purchased 300 tonnes of ferrosilicon 75%min 10-50mm at $1220/t CIF, while I could not win any order at such a high import price," the trader revealed. He added that his latest purchase was in early May, when he bought 200 tonnes at $1250 per tonne, and that he expects the mainstream import price of Chinese ferrosilicon 75%min 10-50mm in the South Korean market to turn weaker this week, given the increase in Chinese supply and subdued South Korean demand.

The trader, whose regular monthly imports of ferrosilicon are around 800 tonnes, expects to import around 200 tonnes this month, down around 500 tonnes from last month. The trader's inventory is at around 300 tonnes and imports for 2023 are at around 8,000 tonnes.

Another South Korean trader revealed that Chinese suppliers are currently offering ferrosilicon 75%min 10-50mm at $1360/mt CIF Korea, with live offers giving up to $20/mt discounts, while suppliers were accepting prices as low as $1300/mt early last week, but he was unable to place an order at such a high import price." My Malaysian supplier is quoting $1280/tonne CIF this week and I could not even close any deal at the Malaysian offer as my local customers are targeting below $1250/tonne", the trader revealed. He added that his last purchase was in early May when he bought 100 tonnes at $1.230 per tonne and he has not purchased since then due to low demand in Korea. He expects mainstream import prices for Chinese ferrosilicon 75%min 10-50mm in the South Korean market to slide this week due to low demand.

The trader's regular monthly imports of ferrosilicon clams are about 50 tonnes, and he expects to import about 100 tonnes this month, down about 300 tonnes from the previous month.