- High production costs underpin price stability
- ZCE futures (Feb’26) hold firm w-o-w
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 edged down by RMB 50/t ($7/t) w-o-w at RMB 5,700-5,930/t ($808-840/t) ex-factory, inclusive of taxes.
Ferro silicon prices remained stable, as high costs supported the market, but weak demand and high inventories capped any potential price gains.
Market updates
Muted demand limits market activity: Domestic ferro silicon prices remained stable, supported by high production costs. Rising electricity prices had put pressure on producers, prompting some companies to reduce or halt output, which tightened supply and provided some support to market sentiment.
However, demand remained weak last week, as steel mill bidding prices had not been finalized, leading to a strong wait-and-see approach and limited improvement in actual transactions. Industry inventory levels also stayed high compared to the same period last year, restricting further price increases. As a result, the market moved within a narrow range, shaped by both supportive and bearish factors.
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 down by RMB 4/t ($0.5/t) w-o-w to RMB 5,336/t ($756/t) on 10 December, compared with RMB 5,340/t ($756/t) on 3 December.
Outlook
The ferro silicon market is expected to remain volatile in the short term, as strong cost pressures provide support while weak demand is likely to limit any upward movement.
(With inputs from CBC)
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