China: Ferro silicon output grows to 10-month high in Oct’25

• Smelters in Inner Mongolia, Ningxia keep run rates high
• FeSi demand may shrink in Oct amid reduced steel output

Mysteel Global: China’s ferro silicon output recovered in October after September’s decrease, with the total tonnage rising by 17,108 tonnes (t) or 3.5% m-o-m to a ten-month high of 505,338 t, according to Mysteel’s monthly survey of the 136 Chinese smelters under its regular tracking.

The sampled smelters host 90% of China’s ferro silicon smelting capacity. On a daily basis, ferro silicon output among the sampled smelters averaged 16,301 t/day last month, representing a marginal increase of 27 t/d m-o-m due to the extra day in October compared to September, the survey results showed.

Production of the ferro alloy in all major production bases increased by varying degrees last month, as most domestic smelters, especially those in North China’s Inner Mongolia and Northwest China’s Ningxia, kept their run rates high, according to the survey.

The high output led ferro silicon inventories held by the smelters to also increase, the survey results show. As of 30 October, total stocks of the ferro alloy among the 60 independent smelters under Mysteel’s tracking reached 71,990 t, soaring by 10,530 t or 17.1% m-o-m.

China’s ferro silicon prices remained weak in October as the supply side pressure softened market sentiment. On 31 October, Mysteel assessed prices of 75% ferro silicon at RMB 5,317/t ($746/t), including the 13% VAT, lower by RMB 39/t ($5/t) from the end of September.

Many domestic smelters have been operating at a loss due to the weakness in ferro silicon prices and the firming prices of raw materials. For example, prices of small granularity semi-coke in Northwest China’s Shaanxi under Mysteel’s assessment were at RMB 760/t ($107/t), including 13% VAT as of 31 October, higher by RMB 50/t ($7/t) from one month ago.

For this month, demand for ferro silicon may shrink on expectations of reduced output among mills in preparation for lower steel demand in winter. This will put some pressure on China’s ferro silicon prices if domestic smelters’ production stays high, a market watcher in Shanghai said.

Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.