- Rising inventories prompt cautious trading
- Policy support to boost industrial activity
CBC: Chinese ferro silicon prices held steady w-o-w, supported by a gradual demand recovery, while cautious trading persisted as inventories continued to rise.
Grade 72% silicon: Prices remained unchanged w-o-w at RMB 5,860-6,030/t ($811-835/t) ex-factory, inclusive of taxes.
Grade 75% silicon: Prices remained steady w-o-w at RMB 6,120-6,310/t ($860-873/t).
Market updates
Market participants expect further demand rebound: The ferro silicon market remained stable amid a slow yet gradual recovery. Market participants are expecting a demand rebound, supported by favourable domestic macroeconomic policies. These policies are expected to bolster industrial activity and consumption in the near term.
Inventory accumulation prompts cautious trading: Inventory levels are gradually rising, prompting traders to adopt a cautious approach with moderate shipments and timely profit-taking. Although overall sentiment remains cautious, the increase in inquiries and manageable stock levels suggests steady market conditions. This indicates that the market is likely to maintain stability in the near future.
Northern factories plan production increase: The market is currently adopting a cautious stance, with reduced supply slightly easing inventory pressure, although stock levels remain high and difficult to decentralise. While large factories in the north have plans to increase production, the lack of significant demand growth may make it challenging for prices to gain upward momentum.
Outlook
In the short term, the ferro silicon market is expected to remain stable, driven by improving supply-demand dynamics and steady production costs.
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