- Inventories rise, causing caution
- ZCE futures edge down by $30/t
CBC: Chinese ferro silicon prices remained unchanged w-o-w, supported by a gradual recovery in demand. However, cautious trading activity weighed on prices.
Grade 72% silicon: Prices were unchanged at RMB 5,860-6,030/t ($797-821/t) ex-factory, inclusive of taxes.
Grade 75% silicon: Prices remained flat at RMB 6,120-6,310/t ($833-859/t).
Market updates
End-user demand makes slight recovery: Terminal demand for ferro silicon showed signs of gradual improvement. An increase in downstream inquiries and price checks indicated a slow resurgence in industrial consumption. While the pace was modest, the uptrend suggests strengthening fundamentals, which may lead to sustained demand in the months ahead.
Market participants adopt cautious stance: Although the broader economic recovery progressed slowly, market participants maintained a cautiously optimistic outlook. The stability in prices was underpinned by restrained market operations and a preference for risk mitigation.
Traders strategically manage inventory: Inventory levels in the ferro silicon market are on the rise, though not to alarming levels. As a result, traders adopted a cautious approach, focusing on moderate shipments and timely profit realisation. This reflects a strategic effort to balance liquidity with market exposure in a still-fragile demand environment.
ZCE futures edge down: On 16 April, ferro silicon prices on the Zhengzhou Commodity Exchange (ZCE) for June 2025 delivery inched down by RMB 218/t ($30/t) w-o-w to RMB 5,686/t ($774/t) from RMB 5,904 ($803/t).
Outlook
The ferro silicon market maintains a cautiously optimistic outlook, supported by expectations of steady macroeconomic recovery. Demand is projected to grow gradually, which could lead to market stability with minimal short-term volatility, barring unforeseen disruptions.
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