- Production resumption eases supply tightness
- September steel buying provides some support
Ferro silicon (Si:75%) prices in China increased w-o-w by RMB 110/t ($16/t) to RMB 6,160-6,340/t ($918-945/t) exw, inclusive of taxes and acceptance. Meanwhile, Si:72% prices increased by RMB 350/t ($52/t) w-o-w to RMB 6,000-6,100/t ($894-909/t) exw.
China’s ferro silicon market remained broadly stable this week, as rising semi-coke prices provided some support, while production resumptions in major producing areas increased supply and eased spot availability. Steel mills continued their peak-season bidding, but cautious buying at higher prices kept the market balanced.
Market updates
Production resumptions increase supply: Ferro silicon plants in major producing areas gradually resumed operations after maintenance, leading to higher supply and easing the earlier tightness in spot availability. The increase in operating rates is likely to add some pressure on prices.
Steel buying supports market: Steel mill bidding during the September peak season continued smoothly, providing some demand support. However, end-users remained cautious about buying at higher prices, limiting the strength of demand and keeping spot prices stable.
Outlook
Ferro silicon prices are likely to remain range-bound in the near term. Rising supply may limit gains, while September steel mill buying should provide some support.
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