- Factory inventories continue to decline, costs stabilise
- ZCE FeSi prices for May 2025 deliveries edge up w-o-w
CBC: Chinese ferro silicon prices remained unchanged w-o-w, with the market continuing to be stable amid balanced supply-demand dynamics. In recent times, the market has been relatively flat, and following the Spring Festival too, there were limited fluctuations, with price pressures easing. The overall sentiment in the market is mixed, with different perspectives regarding future trends.
Grade 72% silicon: Prices were unchanged at RMB 5,980-6,170/tonne (t) ($824-850/t) ex-factory, inclusive of taxes.
Grade 75% silicon: Prices were at RMB 6,260-6,450/t ($862-888/t), firm w-o-w.
Market updates
Market remains stable post-Spring Festival: During the Spring Festival period, the ferro silicon market was stable, with minimal price fluctuations. There were limited changes in production, sales, and inventories. Although some factories resumed production after the holiday, the overall supply-side response was modest. As a result, the market was stable, with slight spikes in supply counterbalancing moderate demand.
While the ferro silicon futures market saw some volatility, this did not lead to significant price changes in the spot market. Additionally, market sentiment was optimistic.
Supply-demand dynamics improve: The supply and demand balance in the market gradually improved, and further improvements are expected in the short term. Factory inventories continued to decrease, which signals a healthier supply-demand relationship.
The pressure on the supply side weakened as inventory levels shrank, and cost stabilised too. However, while the market is showing signs of improvement, there is still uncertainty surrounding price fluctuations, and a small possibility of price adjustments remains.
ZCE futures inch down: On 25 February, ferro silicon prices on the Zhengzhou Commodity Exchange (ZCE) for May 2025 delivery edged up by RMB 26/t ($4/t) w-o-w to RMB 6,238/t ($857/t) from RMB 6,212 ($854/t).
Outlook
Chinese ferro silicon prices are expected to remain stable in the short term, and gradual improvements in supply-demand dynamics suggest that there is potential for slight growth in demand. However, minimal price fluctuations are expected.
Leave a Reply