- Stocks build up, market fundamentals soften
- ZCE futures (Jul’25) decline by $42/t w-o-w
CBC: China’s ferro silicon prices declined marginally w-o-w amid weak market fundamentals and cautious sentiment.
Grade 72% silicon: Prices inched down by RMB 150/t ($21/t) w-o-w to RMB 5,650-5,810/t ($784-806/t) ex-factory, inclusive of taxes.
Grade 75% silicon: Prices dropped by RMB 165/t ($23/t) w-o-w to RMB 5,890-6,070/t ($818-843/t).
Market updates
Prices inch down w-o-w: Ferro silicon prices declined w-o-w, as weak fundamentals continued to weigh on the market. Although there was a recovery in the market, it was sluggish. However, there was some optimism about future demand, supported by expectations of domestic macroeconomic support.
Meanwhile, inventories continued to build, leading traders to act cautiously, focusing on timely profit-taking. Despite the overall sluggishness, downstream inquiries increased slightly, and transaction prices showed early signs of improvement.
Demand recovery remains sluggish: End-user demand showed gradual signs of recovery, but overall market sentiment stayed cautious. Participants remained focused on the imbalance between rising inventories and slow demand recovery.
While there were some positive signals in market activity, most stakeholders maintained a conservative outlook. As a result, the ferro silicon market is expected to operate steadily in the near term, barring any major changes in macroeconomic or industry conditions.
ZCE futures decline: On 28 May, ferro silicon prices on the Zhengzhou Commodity Exchange (ZCE) for July 2025 delivery dropped by RMB 300/t ($42/t) w-o-w to RMB 5,322/t ($739/t) from RMB 5,622/t ($780/t).
Outlook
In the near term, the ferro silicon market is expected to remain stable. Supply-demand dynamics may gradually improve as stainless steel demand shows a steady recovery. Overall, sentiment is likely to remain cautious until clearer signs of recovery emerge.
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