- Stable semi-coke costs support ferro silicon prices
- Weak futures pressure spot sentiment
Ferro silicon (Si:75%) prices in China remained mostly stable with slight rise by RMB 90/t ($13/t) w-o-w at RMB 6,090-6,240/t ($898-920/t) exw, inclusive of taxes.
Meanwhile, Si:72% prices also edged up by RMB 185/t ($27/t) at RMB 5,630-5,740/t ($830-846/t) exw.
China’s ferro silicon market remained largely stable this week, supported by firm semi-coke costs and controlled output, although weak downstream steel demand continued to cap price gains.
Market updates
Weak futures weigh on ferro silicon spot sentiment
Domestic ferro silicon prices remained largely stable, though weaker futures trading dampened spot market sentiment. Traders slightly lowered offers to stimulate deals, while downstream steel mills continued purchasing only for immediate requirements. Transactions for higher-priced cargoes remained limited, reflecting cautious buying interest amid subdued demand and uncertainty over short-term market direction.
Cost support limits downside despite supply pressure
Semi coke prices stayed stable, providing moderate cost support to the ferro silicon market. However, slower steel mill procurement during the seasonal demand slowdown, combined with resumed production in key regions and slight inventory buildup, kept supply-demand fundamentals weakly balanced. While upside momentum remained limited, production costs continued to restrict significant price declines.
Outlook
The ferro silicon market is expected to remain steady with minor fluctuations, as firm raw material costs and maintenance plans support prices, while sluggish steel demand and production resumptions restrict upward movement.
(With inputs from CBC)
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