- Cost support and cautious sentiment stabilise prices
- ZCE Feb’26 futures moved up $14/t w-o-w
Prices of 72% silicon grade remained flat w-o-w at RMB 5,260-5,500/t ($748-783/t) ex-factory, inclusive of taxes, while prices of 75% silicon grade remained unchanged w-o-w at RMB 5,700-5,930/t ($811-844/t) ex-factory, inclusive of taxes.
Ferro silicon prices remained stable across grades, supported by production cuts and firm cost levels, while weak demand and high inventories continued to cap price movements.
Market updates
Firm cost support offsets downside pressure: The market remained stable over the week. On the supply side, increased production cuts and shutdowns reduced availability and offered some price support. However, demand remained slightly weak, and high inventory levels continued to exert downward pressure.
Strong cost support continued to limit producers willingness to cut prices, with some restricting sales to maintain stability.Meanwhile, a rebound in futures prices lifted market sentiment, but the deepening winter season prompted a more cautious stance among participants. As a result, a wait-and-see approach prevailed, keeping market prices stable.
ZCE futures inch up w-o-w: Ferro silicon futures on China’s Zhengzhou Commodity Exchange (ZCE) for February 2026 delivery inched up by RMB 98/t ($14/t) w-o-w to RMB 5,526/t ($786/t) on 24 December compared to RMB 5,428/t ($772/t) on 17 December.
Outlook
The market is expected to remain range-bound in the near term, supported by supply cuts and firm cost fundamentals. However, weak demand and cautious sentiment are likely to cap any upside.
(With inputs from CBC)
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