Mysteel Global: China’s ferro silicon output dropped further in June, with the total easing by a small 740 t on month to touch a 14-month low of 414,055 t, according to Mysteel’s monthly survey among the 136 Chinese smelters under its regular tracking.
The sampled smelters host 90% of China’s ferro silicon smelting capacity. On a daily basis, ferro silicon output among the sampled smelters averaged 13,801 t/day last month, rising by 3.1% on month as June has one less day than May, the findings showed.
China’s ferro silicon output hovered at a relatively low-level last month, with the result being lower by 68,141 t or 14.1% from June last year, according to Mysteel’s survey.
Many Chinese ferro silicon smelters kept their run rates low in June, given their losses on sales of the ferro alloy, with inventories held by the domestic ferro silicon smelters declining accordingly.
Mysteel’s other weekly survey among 60 ferro silicon smelters showed that as of 26 June, their combined stocks registered 69,440 t, lower by 5,730 t or 7.6% from late May. These 60 smelters represent about 80% of China’s total ferro silicon smelting capacity.
China’s spot ferro silicon prices recovered slightly in the second half of June, as market sentiment improved with the strengthening prices of ferro silicon derivatives, Mysteel Global noted.
As of 30 June, the price of 75% ferro silicon under Mysteel’s assessment was at RMB 5,178/t ($723/t) including the 13% VAT, rising by RMB 66/t from the recent low on 16 June, but still lower by RMB 178/t from end-May.
On 30 June, the most traded ferro silicon contract on the Zhengzhou Commodity Exchange for delivery in September closed the daytime trading session at RMB 5,344/t, higher by RMB 166/t from the contract’s settlement price on 30 May, according to the exchange’s data.
Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.
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