- ZCE futures (Jun’25) inch up by $34/t w-o-w
- Traders remain wary as inventory levels rise
CBC: Chinese ferro silicon prices remained largely steady w-o-w, supported by cautious optimism for downstream demand recovery. Early signs of improved end-user consumption and an increase in downstream inquiries led to a stable market outlook.
Grade 72% silicon: Prices remained unchanged w-o-w at RMB 5,860-6,030/t ($813-837/t) ex-factory, inclusive of taxes.
Grade 75% silicon: Prices remained steady w-o-w at RMB 6,120-6,310/t ($849-876/t).
Market recap
Ferro silicon market remains stable: The ferro silicon market continued to operate steadily, with prices holding firm. Market participants expected a rebound in demand, supported by positive macroeconomic sentiment.
Additionally, although inquiries increased w-o-w, inventories also gradually accumulated, though not by much. However, increasing stocks kept traders cautious, focusing on moderate shipments and timely profit-taking.
End-user demand picks up slightly: There was a slight recovery in terminal demand, as evidenced by rising inquiries, which indicates a cautious return of buying interest. Inventory pressure was manageable. Overall, market sentiment was cautious but steady, and the ferro silicon segment is expected to remain stable in the near term.
ZCE futures inch up: On 15 May, ferro silicon prices on the Zhengzhou Commodity Exchange (ZCE) for June 2025 delivery inched up by RMB 248/t ($34/t) w-o-w to RMB 5,678/t ($788/t) from RMB 5,430 ($754/t).
Outlook
In the long run, production is expected to stabilise with gradual demand growth. In the short term, supply-demand dynamics are set to improve, possibly leading to slight price adjustments, though overall, the market may remain stable.
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