CBC: The ferro silicon market remained stable, with a gradual recovery in terminal demand. While the pace of recovery stayed slow, expectations for stronger demand growth remain. Inventory levels continue to rise, indicating a balance between supply and demand. Traders were cautious, moderating shipments and prioritizing timely profits. Market sentiment remained stable, with a careful approach being taken by participants.
Grade 72% silicon: Prices were unchanged at RMB 5,980-6,170/tonne (t) ($825-851/t) ex-factory, inclusive of taxes.
Grade 75% silicon: Prices were at RMB 6,260-6,450/t ($863-890/t), firm w-o-w.
Market updates
Demand and supply dynamics: The ferro silicon market has shown signs of improvement in both downstream inquiries and price inquiries. However, inventory pressure is not significant at this point, which contributes to a more controlled market environment. Despite the gradual increase in demand, the overall pace of recovery has been slow, with limited supply-demand imbalances. This means that while demand is beginning to recover, it is not yet at full capacity, leaving traders to adjust cautiously to the evolving market conditions.
Market sentiment and expectations: Even though the ferro silicon market remains cautious, the sentiment is slightly optimistic for the medium to long-term outlook. Market participants are maintaining a balanced approach, responding to both the existing conditions and the anticipated gradual recovery. Given the stable market, the potential for significant price fluctuations in the short term seems unlikely. However, traders should remain vigilant, as small adjustments may still occur depending on further shifts in demand or supply.
ZCE futures decline: On 4 March, ferro silicon prices on the Zhengzhou Commodity Exchange (ZCE) for May 2025 delivery declined by RMB 130/t ($18/t) w-o-w to RMB 6,108/t ($842/t) from RMB 6,238 ($860/t).
Outlook
In the short term, the ferro silicon market is expected to remain stable with slight price adjustments, while longer-term demand may see gradual improvement.
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