- Firm electricity, semi-coke prices offer cost support
- Need-based demand amid rising supply keeps prices stable
Ferro silicon (Si:75%) prices in China stayed unchanged w-o-w at RMB 6,090-6,240/t ($901-923/t) exw, inclusive of taxes. Meanwhile, Si:72% prices also remained steady at RMB 5,630-5,740/t ($832-849/t) exw.
Domestic ferro silicon prices remained stable w-o-w as weak futures sentiment weighed on market confidence, while strong cost support and ongoing steel mill tenders prevented significant declines, keeping the market trapped in a narrow trading range with cautious participation.
Market updates
Cost support limits further price declines: Ferro silicon producers remained reluctant to reduce quotations due to firm electricity and raw material costs, particularly semi coke prices. At the same time, steel mill tender activity provided baseline demand, helping maintain market stability despite weak futures performance and limited speculative buying interest.
Weak demand restrains market recovery momentum: Downstream steel mills continued purchasing only for immediate production needs rather than conducting large-scale restocking. Rising operating rates increased ferro silicon supply, while traders remained cautious amid uncertain demand prospects, resulting in subdued transactions and a balanced market environment.
Outlook
Ferro silicon prices are expected to remain stable in the near term. Cost support and steel mill tenders will provide downside protection, while rising supply and cautious procurement may limit gains unless downstream steel demand improves noticeably.
(With inputs from CBC)
Leave a Reply