- Market stays quiet, July steel bidding yet to start
- ZCE future prices (Sep’25) inch up by $9/t w-o-w
CBC: The Chinese ferro silicon market remained weak amid stable prices and sluggish demand. Pressure may rise in the short term, with increased supply, while long-term recovery depends on policy support and demand revival, though upside remains limited.
Grade 72% silicon: Prices were unchanged w-o-w at RMB 5,240-5,400/t ($731-755/t) ex-factory, inclusive of taxes.
Grade 75% silicon: Prices remained unaltered w-o-w at RMB 5,620-5,760/t ($734-804/t).
Market updates
Weak demand keeps market sluggish: The ferro silicon market remained sluggish, with demand showing notable weakness. Downstream steel mills continued to buy cautiously, focusing only on urgent needs. July’s steel bidding has yet to start, leading to a quiet market atmosphere and minimal transaction volumes.
Margins remain under pressure: Although electricity costs dipped and lignite prices stabilised in certain production regions, this provided only modest cost relief to producers. The impact on supply remained limited, as producers continued to operate cautiously. With profit margins still under pressure, there was little incentive to increase output or adjust prices aggressively. Market sentiment, as a result, remained subdued.
ZCE futures inch up w-o-w: On 25 June, ferro silicon prices on the Zhengzhou Commodity Exchange (ZCE) for September 2025 delivery inched up by RMB 62/t ($9/t) w-o-w to RMB 5,436/t ($759/t) from RMB 5,374/t ($750/t).
Outlook
In the short term, weak demand and rising supply may pressure prices. However, limited recovery is possible if steel demand improves.
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