- Firm raw material costs, steady end-user demand
- ZCE futures inch up by RMB 130/t ($18/t) w-o-w
CBC: Chinese ferro silicon prices rose slightly over the week, supported by steady demand from the end-user sector and stable raw material costs. Meanwhile, stricter environmental regulations in key regions kept output constrained, maintaining a tight market balance.
Grade 72% silicon: Prices were up slightly by RMB 95/t ($13/t) w-o-w at RMB 5,390-5,600/t ($759-788/t) ex-factory, inclusive of taxes.
Grade 75% silicon: Prices inched up by RMB 100/t ($14/t) w-o-w, at RMB 5,890-6,030/t ($829-849/t) ex-factory, inclusive of taxes.
Market updates:
End-user demand holds firm: The downstream steel industry maintained a steady production pace, supporting consistent demand for ferro silicon. At the same time, stable raw material costs have limited cost-driven volatility. Meanwhile, input costs such as electricity and coke showed little movement, exerting minimal influence on overall pricing.
Tight supply amid environment regulations: On the supply side, stricter environmental policies and regulatory inspections in key production regions have curtailed smelter operations, resulting in limited capacity utilization. This has kept supply growth subdued and limiting overall supply growth.
ZCE futures inch up: Ferro silicon futures on China’s Zhengzhou Commodity Exchange (ZCE) for November 2025 delivery edged up by RMB 130/t ($18/t) w-o-w to RMB 5,756/t ($/810t) on 18 September, compared to RMB 5,626/t ($791/t) on 11 September.
Outlook
Ferro silicon prices may stay volatile in the near term, with supply expected to rise gradually as capacity recovers. Steady steel production is likely to keep demand support intact.
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