Chinese state-owned steel producer Hebei Iron and Steel (HBIS) has raised its tender price for September ferro-silicon, in response to higher spot offers of the bulk alloy.
Its tender price for 72pc ferro-silicon rose to 6,340 yuan/t ($946/t) in September, up by Yn160/t from August and by Yn40/t from its provisional tender price, according to market sources.
Ferro-silicon producers have raised their offers, driven by higher production costs of coke and semi-coke feedstocks, linked to firmer coal prices.
Coal prices rose in the first half of September because of tightening supply, with a number of mines in Shanxi province remaining closed or operating under enhanced safety inspections. Shanxi is China's largest coal-producing province and a key production hub for magnesium metal, coke and ferro-alloys.
Several other steel mills also boosted their purchase prices for the bulk alloy to Yn6,200-6,400/t delivered and paid by acceptance bill for September delivery, up by Yn100-200/t against the previous month.
Argus-assessed prices for 72pc ferro-silicon hit a 20-month high at Yn5,900-6,000/t ex-works on 8 September, up by Yn150/t from the previous assessment on 1 September. But prices fell to Yn5,700-5,800/t on 15 September, tracking lower future prices.
HBIS purchased 3,804t of ferro-silicon in September, up by 164t from August, as it increased operating rates after regular equipment maintenance in August.
HBIS produced 16.44mn t of crude steel in January-June this year and bought 31,263t of ferro-silicon in 2025, according to its half-year report and industrial data.
