China: Ferro silicon prices remain stable w-o-w despite weak end-user demand

• Lower electricity rates offset firm blue coal costs
• ZCE futures tick up by RMB 12/t ($2/t) w-o-w

CBC: Chinese ferro silicon prices remained largely stable w-o-w. Firm blue coal prices provided some cost support, while lower electricity rates in certain regions eased production costs. On the demand side, steel mills maintained cautious procurement amid weak domestic and export demand.

Grade 72% silicon: Prices remained largely stable, down marginally by RMB 60/t ($8/t) w-o-w at RMB 5,330-5,540/t ($748-778/t) ex-factory, inclusive of taxes.

Grade 75% silicon: Prices remained unaltered w-o-w at RMB 5,890-6,030/t ($827-846/t) ex-factory, inclusive of taxes.

Market sentiments

Raw material market trends

Despite firm blue coal prices having provided some cost-side support for ferro silicon producers, the recent reduction in electricity prices across certain regions partially offset this effect. As electricity is a key cost component in ferro silicon production, lower power rates reduced overall production costs, thereby weakening cost intensity.

Consequently, the support from high blue coal prices was not sufficient to drive a notable price rebound, keeping ferro silicon prices in a narrow and weak consolidation phase.

Downstream market trends

Steel mills maintained a cautious approach to procurement amid weak downstream demand and sluggish export activity. With limited support from overseas markets, overall buying interest remained subdued.

Meanwhile, the futures market showed no clear direction, and most market participants therefore adopted a wait-and-watch stance. As a result, the domestic ferro silicon market remained under pressure, with prices fluctuating within a narrow and weak range.

ZCE future price trends

Ferro silicon futures on China’s Zhengzhou Commodity Exchange (ZCE) for December 2025 delivery went up slightly by RMB 12/t ($2/t) w-o-w to RMB 5,464/t ($767/t) on 16 October, compared to RMB 5,452/t ($765/t) on 9 October.

Outlook

Ferro silicon prices will likely remain volatile in the short term, with limited room for major adjustments. Market movement will depend on steel mill tender prices and the pace of demand recovery.