FeSi prices about to ease up in Europe

摘要

FeSi prices in the EU saw a moderate decrease in July on seasonally weak demand and a similar trend in China. Average price of FeSi (75 Si) amounted to EUR 1,437/t DDP against EUR 1,453/t in June. - Although environmental inspections are completed in key Chinese provinces, FeSi production recovery is slow, since electricity tariffs still have not been reduced to local producers, which is rather unusual. Meanwhile, domestic FeSi consumption remains high with daily average crude steel production hitting new record in June. Higher ferrous scrap usage in BOF-steel production will also stimulate China's silicon alloy requirement, since pig iron production is being curbed by more environmental regulations. That being said, Chinese FeSi quotes may still sag further in export markets, considering that RMB/USD weakening has sped up (-2.3 since late June) and is expected to keep the current pace at best in the near future.