- Stable lignite prices offer cost support
- ZCE futures dip by RMB 110/t w-o-w
CBC: Chinese ferro silicon prices held steady w-o-w amid cautious buying, as overcapacity and weak steel demand limited market activity. Spot quotations in Ningxia eased slightly, while rising futures interest reflected renewed investor attention.
Grade 72% silicon: Prices edged down by RMB 25/t ($4/t) w-o-w to RMB 5,350-5,500/t ($749-770/t) ex-factory, inclusive of taxes.
Grade 75% silicon: Prices remained stable w-o-w, at RMB 5,790-5,930/t ($810-830/t).
Market recap
Market activity muted amid cautious buying: Ferro silicon prices remained firm, as steel mills maintained a cautious approach to procurement due to weak end-user demand. Additionally, lignite tags were stable, providing some cost support to producers. Rising open interest in the futures market indicated renewed investor attention.
However, the market continued to face pressure from overcapacity. In the spot market, some enterprises in Ningxia reduced offers slightly, reflecting weak demand.
This combination of oversupply and restrained buying interest kept overall market activity limited. Overall, the market remained in a weak equilibrium with no clear directional momentum.
ZCE futures edge down: Ferro silicon futures on China’s Zhengzhou Commodity Exchange (ZCE) for October 2025 delivery dropped slightly by RMB 110/t ($15/t) w-o-w to RMB 5,330/t ($746/t) on 4 September, compared to RMB 5,440/t ($762/t) on 28 August.
Outlook
Going by current trends, the Chinese ferro silicon market is likely to remain volatile in the near term unless there is a significant change in supply or demand.
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