- Limited cost support weighs on market sentiment
- Higher tender volumes from key mills prop up tags
CBC: The Chinese ferro silicon market remained cautious, as cost support weakened due to a soft coke market and subdued downstream demand. However, higher tender volumes from major steelmakers such as HBIS provided some support. Overall, buying activity was limited to need-based procurement.
Grade 72% silicon: Prices remained unchanged w-o-w at RMB 5,240-5,400/t ($730-752/t) ex-factory, inclusive of taxes.
Grade 75% silicon: Prices remained steady w-o-w at RMB 5,620-5,760/t ($783-802/t).
Market updates
Steady prices, weak cost support: Ferro silicon spot prices remained steady, though market sentiment was cautious. While blue coke prices were steady, weak transaction activity in the coke market reduced cost support. Futures prices showed increased intraday volatility, with the main contract rebounding slightly on support from the broader black series.
However, downstream buyers were still focused on price cuts, and transactions were mostly limited to immediate needs. On the demand front, major steelmakers such as HBIS increased their purchase volumes. In July, the tender volume stood at 2,700 t, marking a 500 t increase over the last round. This uptick may help support market sentiment, though overall demand remains limited.
Outlook
In the near term, ferro silicon prices are likely to remain range-bound amid cautious market sentiment. While steel mill tenders may provide some support, weak end-user demand is expected to limit any significant price recovery.
Leave a Reply