- Low inventories, sluggish production support prices
- Mills make need-based purchases, resist higher prices
Ferro silicon (Si 75%) prices in China remained unchanged w-o-w at RMB 6,100-6,150/t ($887-895/t) ex-factory, inclusive of taxes. Meanwhile, Si 72% prices were also stable at RMB 5,650-5,850/t ($822-851/t) ex-factory, inclusive of taxes.
China’s domestic ferro silicon market remained steady, supported by stable costs, while cautious downstream demand kept trading activity muted.
Market updates
Stable costs, tight supply support market: Domestic ferro silicon prices held steady, underpinned by stable electricity tariffs and raw material costs. Producers maintained firm offers, with limited willingness to reduce prices.
On the supply side, operating rates remained relatively low, resulting in constrained spot availability and low inventory levels, which supported overall market stability.
Cautious demand limits trade activity: Downstream demand remained cautious, with steel mills continuing need-based procurement and showing limited acceptance towards higher prices. Trading activity remained subdued, with transactions largely limited to small-volume and immediate requirements.
Market participants maintained a wait-and-watch approach amid the absence of strong demand-side drivers, keeping overall sentiment neutral.
Outlook
The ferro silicon market is expected to remain steady next week, supported by stable costs and constrained supply. However, cautious downstream demand is likely to limit any significant upside. Prices are expected to move within a narrow range, with no major fluctuations anticipated.
(With inputs from CBC)
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