- Stable production costs keep prices supported
- ZCE Mar’26 futures inch down by $19/t w-o-w
Ferro silicon prices remained stable w-o-w across grades during the week ended 23 January 2026. Si: 72% prices remained stable w-o-w at RMB 5,260-5,500/t ($754-789/t) ex-factory, inclusive of taxes, while Si: 75% prices were unchanged at RMB 5,750-5,900/t ($825-846/t) ex-factory, inclusive of taxes.
Prices remained steady, supported by balanced supply conditions and stable production costs. Cautious procurement activity and volatile futures prices limited overall market movement.
Market updates
Balanced supply supported by stable costs: The market remained largely stable. On the supply side, operating rates at enterprises were low, leading to a slight decline in output. However, maintenance-related shutdowns and resumptions across regions largely balanced each other, keeping overall supply steady. Stable production costs continued to offer price support.
On the demand side, downstream steel mills showed some pre-holiday stocking demand, but procurement volumes were lower than the same period last year. Traders remained cautious on inventory accumulation, leading to slower purchasing activity, while volatility in futures prices weighed on market sentiment. Enterprises maintained a cautious wait-and-watch stance, which helped prevent further supply-demand imbalance and kept prices stable.
ZCE futures inch down w-o-w: Ferro silicon futures on China’s Zhengzhou Commodity Exchange (ZCE) for March 2026 delivery inched down by RMB 134/t ($19/t) w-o-w to RMB 5,556/t ($797/t) on 21 January 2026 compared to RMB 5,690/t ($816/t) on 14 January 2026.
Outlook
Ferro silicon prices are expected to remain at around current levels in the near term, with weak demand limiting upside while firm cost support provides a floor. Market attention will continue to focus on power costs, steel mill procurement activity, and inventory levels.
(With inputs from CBC)
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