- Firm power tariffs, semi-coke prices limit low-priced sales
- Seasonal demand slowdown restricts price upside
Ferro silicon (Si:75%) prices in China remained steady w-o-w at RMB 5,900-6,090/t ($871-899/t) exw, inclusive of taxes. Meanwhile, Si:72% prices were also unchanged at RMB 5,450-5,550/t ($805-819/t) exw.
China’s ferro silicon market held steady this week, as cost support from electricity and semi-coke offset rising supply following production resumptions. Seasonal weakness in steel demand limited procurement, resulting in range-bound trading.
Market updates
Cost floor holds despite supply growth: Production costs remained supportive, with firm electricity tariffs and semi-coke prices discouraging aggressive low-priced sales. However, this support was offset by rising supply as producers gradually resumed operations, increasing market availability. Output is expected to rise further in the near term, with inventories likely to build, limiting any meaningful upside in prices.
Subdued demand keeps trading muted: Downstream demand remained weak amid the seasonal steel industry slowdown. Steel mills continued to procure only on a need-based basis, with limited interest in restocking, while magnesium sector demand also showed little improvement. Spot transactions were largely confined to small-volume purchases, keeping overall trading activity subdued.
Outlook
China’s ferro silicon market is likely to stay largely stable, with firm costs balancing higher supply and subdued demand. Rising output and inventories could weigh on prices if steel consumption remains weak.
With inputs from CBC
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