Ferro silicon market in China fell on bleak market performance this week. Below are highlights from the market:
Reduced prices:
- 75% silicon content: Prices declined by RMB 110/t ($15/t) this week reaching RMB 6,710-6,890/t ($932-$957/t) ex-works, including tax.
- 72% silicon content: Prices decreased by RMB 105/t ($15/t), settling in the range of RMB 6,380-6,570/t ($886-$913/t) ex-works, including tax.
Pessimistic market atmosphere: Spot prices remained lacklustre, with a decline in the futures market and increased pessimism in the industry.
Weak demand: The news of production suspensions and reductions in some factories weakened cost-side support, and market demand stayed poor. Buyers were cautious and, in a wait-and-see mode, with a prevailing sentiment towards lower prices.
High inventories: It was observed that the demand remained dull and inventories were high, and various factors such as sluggish real estate performance and slow recovery in construction steel demand impacted the industry.
With weak raw material prices and reduced cost-side support, many steel companies are facing losses. Given the prevailing negative conditions.
Outlook:
It is anticipated that the market may continue its weak trend in the short-term owing to sluggish demand and slow recovery in the steel sector. It is suggested to closely monitor these factors and adapt strategies accordingly.
Note: This article has been written in accordance with an agreement between CBC and BigMint.