- Firm cost support offsets muted demand
- Fresh steel mill procurement holds the key
Ferro silicon (Si:75%) prices in China remained unchanged w-o-w at RMB 5,900-6,090/t ($867-895/t) exw, inclusive of taxes. Meanwhile, Si:72% prices were also steady at RMB 5,450-5,550/t ($801-816/t) exw.
China’s ferro silicon market remained largely stable as support from raw material and power costs offset weak downstream demand. Balanced market fundamentals kept prices unchanged, with no strong trigger for a breakout.
Market updates
Cost support offsets higher operating rates as inventory pressure eases: Semi-coke prices stabilized, while electricity tariffs increased slightly in some producing regions, providing cost support to producers. At the same time, manufacturers marginally raised operating rates, but steady inventory draw downs helped ease shipment pressure, reducing the need for aggressive price cuts.
Cautious sentiment amid slow demand curbs market momentum: Demand remained subdued as steel mills continued purchasing on need-basis, with no fresh round of bulk restocking. Traders maintained a cautious wait-and-see approach, while weak finished steel demand and ongoing maintenance at some steel mills limited procurement, keeping the market range-bound.
Outlook
China’s ferro silicon market is expected to remain range-bound in the near term, supported by stable raw material costs and firm power tariffs. However, weak steel demand and limited restocking by mills are likely to cap any significant price gains, with procurement activity remaining the key factor to watch.
With inputs from CBC
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