- Demand recovers slowly on broader market optimism
- ZCE futures for May’25 edge down by RMB 12/t w-o-w
CBC:Chinese ferro silicon prices inched down w-o-w, though the supply-demand gap narrowed, with buying interest among end-users slowly picking up.
Grade 72% silicon: Prices inched down by RMB 65/tonne (t) ($9/t) to RMB 5,860-6,030/t ($810-834/t) ex-factory, inclusive of taxes.
Grade 75% silicon: Prices dropped by RMB 70/t ($10/t) to RMB 6,120-6,310/t ($846-873/t).
Market updates
Slow but steady demand recovery: Terminal demand for ferro silicon recovered but at a slow pace. While the impact of this gradual increase in demand was not very strong or immediately felt, it provided some stability, and the market still holds expectations for further improvements in the near future. This optimism is driven by the broader macroeconomic recovery, which continues to support market sentiment.
Rising inventories amid traders: Ferro silicon inventories have been steadily accumulating, which contributed to a more cautious approach from traders. With inventories rising, market players focused on maintaining a balanced approach in terms of sales and shipments. Traders tried to target moderate sales volumes for timely profit realisation, reflecting a cautious outlook.
ZCE futures edge down: On 19 March, ferro silicon prices on the Zhengzhou Commodity Exchange (ZCE) for May 2025 delivery inched down by RMB 12/t ($2/t) w-o-w to RMB 5,982/t ($827/t) from RMB 5,994 ($829/t).
Outlook
In the short term, the ferro silicon market is expected to remain stable amid improving supply-demand dynamics and gradually reducing factory inventories. Price adjustments are possible but may be minimal, as cost declines have halted.
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