- Policy-driven supply concerns support price stability
- New energy demand offsets traditional sector weakness
CBC: Ferro silicon prices stayed stable, with supply contraction expectations supported by policy and power costs. Rising demand from the new energy sector helped offset weak traditional steel demand.
Grade 72% silicon: Prices edged down by RMB 30/t ($4/t) w-o-w to RMB 5,360-5,520/t ($746-768/t) ex-factory, inclusive of taxes.
Grade 75% silicon: Prices saw a slight decrease by RMB 30/t ($4/t) w-o-w, reaching RMB 5,740-5,880/t ($799-818/t).
Market recap:
Prices stayed stable amid production cuts: Prices remained largely stable, although Grade 72 saw price declines in certain regions. Expectations of a supply contraction had risen due to Inner Mongolia’s anti-involution policies and increasing electricity costs, which weighed on production outlook.
In Ningxia, environmental regulations and ongoing technical upgrades had led to localized production cuts, offering some support to spot prices. Despite regional softness, the overall market was underpinned by these supply-side constraints.
New energy demand support market:The main futures contract showed limited movement. While traditional steel demand remained weak, rising consumption from new energy sectors such as photovoltaics and magnesium emerged as a key growth driver, helping offset the slowdown in construction steel.
Lignite price declines offered some cost relief, but elevated electricity charges continued to underpin price levels.
Outlook
In the short term, ferro silicon prices may fluctuate, with potential to break resistance if supportive policies persist, however, risks remain from possible electricity price adjustments in Ningxia and weak export demand from India
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