- Market faces uncertainty as it enters off-season
- Buyers show hesitance towards large purchases
CBC: Chinese ferro silicon prices remained unchanged w-o-w. As the Spring Festival approaches in January, some steel mills will stop production ahead of schedule for maintenance, and the market has low expectations for winter storage.
Grade 72% silicon: Prices stood firm w-o-w at RMB 5,980-6,170/tonne (t) ($816-842/t) ex-factory, inclusive of taxes.
Grade 75% silicon: Prices were at RMB 6,260-6,450/t ($854-880/t), unchanged w-o-w.
Market updates
Prices remain stable amid uncertainty: Prices of ferro silicon remained steady, with the market in a wait-and-watch mode. With the market entering the off-season, there was increased uncertainty and reduced confidence regarding demand. However, most merchants saw stable sales, while manufacturers continued production based on existing orders, despite ongoing losses. Additionally, there was decent cost support for ferro silicon, which limited drastic price changes.
Cautious sentiments weigh on demand: On the downstream side, market activity was subdued amid minimal supply fluctuations. However, with macroeconomic support potentially weakening, the overall market sentiment was cautious. Buyers were reluctant to commit to large purchases, waiting for clearer market signals. This cautious approach, combined with uncertainties regarding future demand, contributed to a restrained market atmosphere.
ZCE futures inch up w-o-w: On 16 January, prices on the Zhengzhou Commodity Exchange (ZCE) for March 2025 delivery edged up by RMB 134/t ($18/t) w-o-w to RMB 6,480 ($884/t) from RMB 6,346/t ($866/t) on 9 January.
Outlook
Ferro silicon prices are expected to hold steady due to stable downstream demand and limited changes in supply. As the industry transitions between peak and off-seasons, market dynamics will remain volatile with cautious purchasing behaviour.
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