- Weak steel demand keeps ferro silicon prices stable
- Balanced supply-demand fundamentals limit price movement
Ferro silicon (Si:75%) prices in China remained flat w-o-w at RMB 5,900-6,090/t ($868-896/t) exw, inclusive of taxes. Meanwhile, Si:72% prices were also steady at RMB 5,450-5,550/t ($802-817/t) exw.
China’s domestic ferro silicon market remained static during the week, as cost support from electricity and raw materials offset weak seasonal demand. Cautious steel mill procurement and balanced supply-demand fundamentals kept prices rangebound.
Market updates
Steel mill caution caps ferro silicon market momentum: Demand from steel producers remained restrained as mills continued to procure only against immediate production needs, reflecting cautious buying sentiment amid the seasonal slowdown. Competitive tendering and a focus on cost control limited suppliers’ pricing power, while downstream consumers refrained from building inventories. As a result, trading volumes remained modest and the market lacked sufficient demand to support any sustained upward price movement.
Balanced fundamentals keep market sentiment unchanged: China’s ferro silicon market remained in a wait-and-watch mode as neither supply nor demand provided a clear directional trigger. Comfortable material availability was largely matched by restrained consumption, keeping the market in equilibrium. While recent price declines reduced selling pressure from producers, the absence of stronger downstream demand prevented any recovery, leaving participants cautious and prices largely range-bound.
Outlook
China’s ferrosilicon prices are expected to remain range-bound in the near term, with weak demand limiting gains and production costs preventing sharp declines. Steel mill tenders, supply levels, and raw material price movements will remain key market drivers.
With inputs from CBC
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