- Producer losses limit pressure on prices
- Steel mills continue to buy only as needed
Ferro silicon (Si:75%) prices in China remained stable w-o-w at RMB 6,000-6,190/t ($866-893/t) exw, inclusive of taxes. Si:72% prices were also unchanged at RMB 5,550-5,650/t ($801-815/t) exw.
China’s ferro silicon market remained stable this week as high electricity prices pushed up production costs and left some producers operating at a loss, limiting their willingness to lower offers. This support helped to offset weak downstream demand, while production controls and limited spot availability also helped keep prices steady.
Market updates
High production costs limit price cuts: High electricity prices continued to support producers’ quotations, while some producing areas maintained production controls. Factory stocks were mainly committed to long-term contracts, reducing spot availability and providing a floor for prices.
Weak steel demand keeps trading slow: Steel mills remained in the traditional off-season and continued to purchase mainly for immediate needs. No new large-scale buying emerged, while traders preferred just-in-time purchases rather than chasing prices. Spot transactions therefore remained limited.
Outlook
Ferro silicon prices are likely to remain range-bound in the coming week. High electricity prices and limited supply should restrict downside, while weak steel mill buying is likely to limit gains. Production resumptions, electricity prices and the next round of steel mill procurement will be key factors to watch.
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