- Downstream demand weakens amid margin recovery
- ZCE futures decline by RMB 58/t ($8/t) w-o-w
Grade 72% silicon: Prices edged up by RMB 50/t ($7/t) w-o-w to RMB 5,390-5,550/t ($751-773/t) ex-factory, inclusive of taxes.
Grade 75% silicon: Prices saw a slight increase by RMB 50/t ($7/t) w-o-w, reaching RMB 5,770-5,910/t ($804-823/t).
Market updates:
Inventory pressure eases, but market stays flat: Ferro silicon prices remained largely stable. The market was initially supported by expectations of anti-involution policies and supply-side reform, but this optimism was tempered by reduced market participation.
Despite a rebound in the main ferro silicon contract prices, supply-demand fundamentals have shown no significant improvement. While inventory pressure has eased, spot market conditions remained stable, with no signs of tightening.
Uncertain sentiment led to market volatility:Downstream demand for high-priced resources has weakened, although ferro alloy producers have seen a m-o-m recovery in margins.
However, the impact of production cuts remains uncertain. As a result, the tug-of-war between bullish and bearish sentiment has intensified, leading to heightened short-term market volatility.
ZCE futures edge down: Ferro silicon futures on China’s Zhengzhou Commodity Exchange (ZCE) for September 2025 deliveries edged down by RMB 58/t ($8/t) w-o-w to RMB 5,696/t ($794/t) on 31 July compared to RMB 5,754/t ($802/t) on 24 July.
Outlook
Ferro silicon prices will likely remain volatile in the short term, with potential gains if demand recovers, though weak fundamentals may lead to a potential correction.
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