News
26/09/17
China's HBIS raises ferro-silicon tender in September
Beijing, 17 September (Argus) — 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.
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