Slow procurement in South Korean ferrosilicon import market

News 2021-01-13

Due to the uncertain delivery date of International suppliers, the market for imported ferrosilicon from South Korea was Slow to purchase this week .
Supported by rising prices from international suppliers ,Currently mainstream price of ferrosilicon 75% 10-50mm imported from South Korea is currently usd 1,320-1,350 /ton CIF Busan,an increase of usd 20/tom from the beginning of last week.Although the demand in Korean market is sluggish , but the price of the international market remain firm. The industrial insiders believe that the price of imported ferrosilicon in Korea market will remain stable in the coming week .

Another South Korean trader revealed that “this week he originally planed to purchase 120mt of Ferrosilicon 75%min 10-50mm but the purchase was delayed due to uncertain delivery date . “Due to rising price in the Chinase market , a Chinese supplier is currently offering a price of Usd 1,320/ton Busan Port,Korea and there is no room for bargaining .,the delivery period is expected to be in 2nd half of Feb of 2021, while the supplier can accept as lower as the price of usd 1,300/tons CIF Busan port .The trader revealed on Tuesday .
He stated that this Malaysian Supplier offer ferrosilicon at a price usd 1,450/ton CIF Busan port, An increase of usd 50/ton from the beginning of last week,and no counter offer is accepted and the goods will be shipped in 2nd half of Feb.He originally expected to receive all the goods ordered from Chinese supplier at the end of December a week ago,but in the end only received 20% of goods .Taking into account the uncertain delivery date , he will wait and see for at least a week.Despite the sluggish demand in the Korean market , he believes that the price of products will also remain firm in the coming week,given the firm prices of international suppliers .

The trader’s regular monthly import volume of ferrosilicon is about 600 tons,imported volume was about 500mt in last month .currently don’t hold stock .Total purchase volume is about 5,000mt in the year of 2020.

As the raw materials of ferrosilicon , the price of semi coke also remain a high level . With the coming of Chinese new year , the industry insiders believe that semi-coke price will last in a stable level and not coming down before Chinese New year . Further more ,due to the virus outbreak in North city of China, the transportation of semi coke has suffered difficult .