- Controlled supply amid low operating rates
- ZCE (Apr’26) futures down by $8/t w-o-w
Ferro silicon prices Si 75% in China remained unchanged w-o-w at RMB 5,260-5,500/t ($758-792/t) ex-factory, inclusive of taxes, while Si 72% prices also stayed flat at RMB 5,750-5,900/t ($828-850/t). Overall, prices remained stable during the week, supported by steady raw material costs and controlled supply, though limited pre-holiday buying and futures market volatility capped any upside.
Market updates
Stable market supported by cost factors: The ferro silicon market remained stable during the week, supported by relatively steady raw material costs, which provided cost support to prices. On the supply side, production levels remained low as producers showed limited willingness to operate at higher rates, keeping supply pressure manageable.
On the demand front, steel mills mainly focused on pre-holiday procurement, with steel tender prices providing some guidance. However, buying volumes remained limited, restricting demand growth.Meanwhile, futures market volatility and cautious sentiment offset cost support, keeping prices stable amid mixed market cues.
ZCE futures edge down w-o-w: Ferro silicon futures for April 2026 delivery on China’s Zhengzhou Commodity Exchange (ZCE) fell slightly by RMB 56/t ($8/t) w-o-w to RMB 5,652/t ($814/t) on 5 February, from RMB 5,708/t ($822/t) on 29 January.
Outlook
Ferro silicon prices are expected to remain range-bound in the near term. While supply is supported by policy constraints, demand is pressured by pre-holiday maintenance shutdowns at steel mills, with a gradual recovery anticipated after the festival.
(With inputs from CBC)
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