China: Ferro silicon prices remain flat w-o-w despite soft steel demand

• Market stability driven by firm futures and ore costs
• ZCE future prices up by RMB 176/t (25/t) w-o-w

CBC: Ferro silicon prices remained steady over the week, supported by firm lignite costs and a stronger futures market that had lifted spot sentiment. However, weak downstream steel demand and cautious buying behavior continued to weigh on overall market confidence, keeping price gains restricted within a narrow range.

Prices for 72% silicon grade remained unaltered w-o-w to RMB 5,330-5,540/t ($748-777/t) ex-factory, inclusive of taxes.

Prices for 75% silicon grade remained unchanged w-o-w to RMB 5,890-6,030/t ($827-846/t) ex-factory, inclusive of taxes.

Market updates

HBIS lowers ferro silicon bid prices m-o-m: China’s Hebei Iron and Steel Group (HBIS) announced its ferro silicon (Si: 72%) bid price for Oct’25 at RMB 5,660/t ($794/t), down by RMB 140/t ($20/t) from Sep’25. The price is inclusive of all taxes and freight charges to HBIS facilities.

Stable market supported firm costs: Ferro silicon prices continued to remain steady, supported by stable lignite costs and a stronger futures market that lifted spot market sentiment. Supply was further constrained due to plant maintenance, while the release of steel mill tenders added to the positive market outlook and helped sustain overall stability.

Mild demand support, gains remain limited: Meanwhile, the ongoing bidding activity at steel mills supported some demand, however, upward momentum remained limited. Weak downstream steel demand, production curbs at mills, and subdued retail buying continued to weigh on market sentiment. Overall, the market remained stable, with futures prices closing only marginally higher.

ZCE future prices inch up: Ferro silicon futures on China’s Zhengzhou Commodity Exchange (ZCE) for December 2025 delivery inched up by RMB 176/t (25/t) w-o-w to RMB 5,540/t ($777/t) on 22 October, compared to RMB 5,364/t ($753/t) on 15 October.

Outlook

In the near term, ferro silicon prices are likely to remain range bounded, with cost support from semi-coke and reduced supply due to production cuts,while weak steel demand and cautious buying may limit any price gains.