- Steady production costs underpin market stability
- Weak steel demand limits price upside
Ferro silicon (Si:75%) prices in China stayed unchanged w-o-w at RMB 6,090-6,240/t ($900-922/t) exw, inclusive of taxes.
Meanwhile, Si:72% prices also remained steady at RMB 5,630-5,740/t ($832-848/t) exw.
Chinese ferro silicon prices moved within a narrow range, supported by firm costs but constrained by weaker downstream purchasing demand.
Market updates
Firm costs support market price stability
Semi-coke prices remain firm, providing cost support and preventing significant price declines. Producers in major manufacturing regions maintain tight spot inventories and show a strong willingness to hold prices. These factors continue to offer a solid foundation for overall ferro silicon market stability.
Weak demand and futures pressure sentiment
Downstream steel mills have slowed procurement activities, reducing support from rigid demand. Meanwhile, declining and volatile futures prices have increased market caution and wait-and-see sentiment. As bullish and bearish factors compete, trading remains dominated by small, demand-driven orders, limiting major price movements.
Outlook
In the near term, ferro silicon prices are expected to remain range-bound, supported by firm production costs and low inventories, while increasing supply and cautious downstream demand limit upside potential ahead of major steel mill tenders.
(With inputs from CBC)
Leave a Reply