- Stable costs and production cuts support market
- Weak trading activity limits price movement
Ferro silicon (Si:75%) prices in China remained unchanged w-o-w at RMB 6,000-6,150/t ($882-904/t) exw, inclusive of taxes.
Meanwhile, Si:72% prices also held stable at RMB 5,450-5,550/t ($801-816/t) exw.
China’s domestic ferro silicon market remained steady, supported by controlled output, stable semi-coke costs, and manageable inventories, while subdued downstream demand and cautious trading activity kept the market in a stalemate.
Market updates
Production cuts and stable costs support prices: Ferro silicon prices remained supported by producers’ flexible output adjustments and stable semi-coke costs, which continued to provide a floor to production economics. Although electricity tariffs eased in some regions, the impact on overall costs remained limited. Futures prices fluctuated upward during the week, but weak spot trading and cautious sentiment restricted any significant market movement.
Need-based buying keeps market subdued: Downstream steel mills largely completed monthly tenders, with no fresh procurement momentum observed in the market. Demand remained limited to immediate requirements, while weak steel sector conditions and cautious trader participation continued to weigh on transactions and overall sentiment.
Outlook
China’s ferro silicon market is expected to remain range-bound in the near term. Stable raw material costs and controlled production may continue to support prices, while weak steel demand, rising inventory pressure, and cautious procurement are likely to cap any meaningful upside.
(With inputs from CBC)
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