- Tight supply, high power tariffs support prices
- ZCE futures (May’26) increase by $48/t w-o-w
Ferro silicon (Si 75%) prices in China edged up by RMB 20/t ($3/t) w-o-w to RMB 5,300 – 5,500/t ($769 – 797/t) ex-factory, inclusive of taxes, on 4 March 2026.
Similarly, Si 72% prices also rose slightly by RMB 25/t ($4/t) w-o-w to RMB 5,750 – 5,950/t ($834 – 855/t) ex-factory, inclusive of taxes.
Ferro silicon prices increased mildly, supported by strong production costs and relatively tight supply. Demand from steel mills improved moderately, leading to slightly better market activity.
Market updates
High production costs keep prices firm: Prices rose marginally w-o-w, supported by strong production costs and improved market sentiment. Electricity tariffs in major producing regions remained relatively high, while the rebound in futures prices further strengthened confidence among market participants. On the supply side, low operating rates at plants limited overall output, which kept supply pressure relatively low and supported prices.
On the demand side, purchasing activity from steel mills recovered moderately, leading to a slight increase in market inquiries and transactions. Meanwhile, traders showed a greater willingness to restock, which further supported buying interest.
Overall, relatively tight supply and gradually improving demand led to a slight increase in spot prices.
ZCE futures rise slightly w-o-w: Ferro silicon futures for May 2026 delivery on China’s Zhengzhou Commodity Exchange (ZCE) increased by RMB 332/t ($48/t) w-o-w to RMB 5,818/t ($843/t) on 4 March from RMB 5,486 /t ($795/t) on 25 February.
Outlook
Ferro silicon prices are expected to remain largely stable in the short term, supported by firm production costs, while gains may be limited by downstream demand.
(With inputs from CBC)
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