- Rising input costs offer limited price support
- ZCE futures (Feb’26) tick up by $3/t w-o-w
Ferro silicon prices remained unchanged w-o-w on 3 December across grades as supply stayed sufficient despite minor production cuts, while demand was largely need-based. Overall sentiment remained cautious with mixed market cues and moderate cost support.
Prices of 72% silicon grade remained unchanged w-o-w at RMB 5,260-5,500/t ($745-779/t) ex-factory, inclusive of taxes.
Prices of 75% silicon grade stayed flat w-o-w at RMB 5,750-5,980/t ($814-847/t) ex-factory, inclusive of taxes.
Market updates
Firm raw material costs underpin market sentiment: Domestic ferro silicon prices remained stable. Some producers reduced or halted production due to losses, resulting in a modest decline in output. However, overall supply in the market remained sufficient. On the demand side, steel mills continued to purchase mainly on a need-only basis, and retail trading activity stayed subdued, reflecting cautious sentiment.
On the cost front, rising electricity prices in major producing regions, along with firm raw material costs, provided some support to market sentiment. However,with these mixed factors, the market adopted a wait-and-see approach, and strong bargaining between buyers and sellers became evident.
ZCE futures remain stable w-o-w: Ferro silicon futures on China’s Zhengzhou Commodity Exchange (ZCE) for February 2026 delivery remained largely stable, edging up by RMB 22/t ($3/t) w-o-w to RMB 5,340/t ($756/t) on 3 December compared with RMB 5,318/t ($753/t) on 26 November.
Outlook
Ferro silicon prices are expected to remain range bound in December, supported by cost factors yet constrained by soft demand, though shifts in end-user demand may influence market direction.
(With inputs from CBC)
Leave a Reply