- Supply steady despite production cut
- ZCE futures inch down by RMB 258/t w-o-w
CBC: Ferro silicon prices continued to show a steady trend despite production cuts in Ningxia, while weak steel demand and lower HBIS bids kept market sentiment under pressure.
Grade 72% silicon: Prices remained flat 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 updates
Supply remains stable: Ferro silicon prices had remained stable, despite some producers in Ningxia reducing output for maintenance. These short-term production cuts had minimal impact, as overall operating rates and total production continued to grow, maintaining a steady supply in the market.
Weak steel demand weighs on prices: On the demand side, the steel industry’s requirement for ferro silicon had softened, as reflected in lower HBIS bidding prices and a month-on-month decline in weekly consumption across the five major steel grades.
While low inventories at some manufacturers provided limited support to prices, the overall trend of rising supply and weakening demand continued to exert downward pressure on the market.
ZCE futures edge down: Ferro silicon futures on Chinas Zhengzhou Commodity Exchange (ZCE) for October 2025 delivery went down by RMB 258/t ($36/t) w-o-w to RMB 5,466/t ($762/t) on 21 August, from RMB 5,724/t ($798/t) on 14 August.
Outlook
In the near term, ferro silicon prices will likely remain under pressure as rising supply and weak steel demand will outweigh support from low inventories.
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