- Producers report minimal new orders
- ZCE futures decline by $13/t w-o-w
CBC: Chinese prices of ferro silicon Si: 75% grade fell slightly this week, while Si: 72% tags remained stable. Market conditions were challenging, with minimal new orders, an overall pessimistic outlook among manufacturers, and falling raw material prices.
Grade 72% silicon: Prices were unchanged w-o-w at RMB 6,030-6,220/tonne (t) ($831-858/t) ex-factory, inclusive of taxes.
Grade 75% silicon: Prices dipped by RMB 130/t ($18/t) to maintain a range of RMB 6,410-6,600/t ($882-908/t).
Market updates
Pessimism emerges despite steady production: Market sentiments remained pessimistic, with manufacturers reporting minimal new orders. Despite this, producers made no move to cut overall production, and output remained strong, as existing orders needed to be fulfilled.
A downtrend in the raw materials market also impacted production costs, especially for small and medium-sized producers. In Qinghai, early on in the week, delivery prices were slightly higher, but the overall level was low. With input costs failing to offer price support, some manufacturers quoted lower, while large factories maintained stable tags due to steel mill contracts.
ZCE futures inch down: On 5 December, prices on the Zhengzhou Commodity Exchange (ZCE) for January 2025 delivery inched down by RMB 94/t ($13/t) w-o-w to RMB 6,232/t ($858/t) from RMB 6,326/t ($871/t) on 28 November.
Outlook
In the short term, ferro silicon prices will likely remain weak due to insufficient upward momentum from the steel segment and rising spot market inventory.
Leave a Reply