- Producers maintain stable offers on stagnant raw material prices
- Steel mills procure limited volumes to cover immediate needs
Chinese ferro silicon (Si:75%) prices increased by RMB 50/t ($7/t) w-o-w to RMB 6,050-6,240/t ($900-928/t) exw, inclusive of taxes and acceptance. Meanwhile, Si:72% prices rose by RMB 50/t ($7/t) to RMB 5,600-5,700/t ($833-848/t) exw.
China’s ferro silicon market moved slightly higher this week, although overall trading remained stable. Limited fluctuations in raw material prices continued to provide cost support, while producers maintained their offers without actively pushing prices higher or lower. On the demand side, steel mills mainly followed existing procurement plans, with few new large purchases.
Market updates
Raw material prices support production costs: Raw material prices remained broadly stable, providing support to ferro silicon production costs. Producers therefore maintained stable pricing and showed little interest in reducing offers to move stocks.
Steel mills make limited fresh purchases: Purchases were mainly driven by immediate requirements, with some new centralised procurement plans from steel mills. Traders largely stayed on the sidelines, with limited interest in either raising prices or offering discounts. This kept spot trading in a narrow range.
Outlook
Ferro silicon prices are likely to remain largely stable in the near term. Production costs should limit downside, while the lack of stronger steel mill demand may cap price gains. Maintenance activity, steel mill tenders, semi-coke and electricity prices will remain key factors to watch.
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