China: Ferro silicon prices remain flat w-o-w amid cautious market activity

• Volatility in black sector weighs on sentiment
• ZCE futures inch down by RMB 98/t w-o-w

CBC: Chinese ferro silicon prices remained stable, though market activity slowed due to weak steel mill bidding and limited inquiries. Volatility in the black sector and a dip in futures pressured sentiments, keeping most traders on the sidelines. Spot transactions were driven largely by restocking, while the market remained in a supply-demand stalemate.

Grade 72% silicon: Prices stayed steady w-o-w to RMB 5,360-5,520/t ($747-769/t) ex-factory, inclusive of taxes.

Grade 75% silicon: Prices remained unchanged w-o-w, reaching RMB 5,740-5,880/t ($800-820/t).

Market recap:

Sluggish bidding limits market activity: Ferro silicon prices held steady, with market sentiment becoming cautious due to volatility in the black sector and the sluggish pace of steel mill bidding. Spot market activity was mainly supported by restocking demand, while most traders adopted a wait-and-watch approach.

Prices of 72% and 75% grades in key production hubs remained firm, although actual trading activity showed a slight decline.

Limited mill inquiries keep market cautious: On the demand front, procurement inquiries from steel mills remained limited, while a mild drop in the futures market further weighed on sentiment. The cautious tone among buyers added to the lack of momentum in spot transactions.

Overall, the market continued to reflect a supply-demand stalemate, with both buyers and sellers maintaining a restrained approach.

ZCE futures edge down: Ferro silicon futures on China’s Zhengzhou Commodity Exchange (ZCE) for October 2025 delivery went down slightly by RMB 98/t ($14/t) w-o-w to RMB 5,724/t ($798/t) on 14 August, from RMB 5,822/t ($811/t) on 7 August.

Outlook

In the short term, ferro silicon prices are expected to remain range-bound, with gains likely to be capped by weak traditional demand and steel tender pressure. However, rising demand from new energy sectors and potential supply tightening under anti-involution policies will likely provide support.