- Soft demand from downstream steel sector
- ZCE futures edge up by RMB 40/t ($6/t) w-o-w
CBC: Ferro silicon prices remained mostly stable with a slight decline, supported by firm semi coke prices, while weak downstream demand and falling bids kept market sentiment cautious.
Prices for 72% silicon grade remained largely stable, edging down by RMB 55/t ($8/t) w-o-w to RMB 5,260 – 5,500/t ($741 – 775/t) ex-factory, inclusive of taxes.
Prices for 75% silicon grade also inched down slightly by RMB 95/t ($13/t) w-o-w to RMB 5,750 – 5,980/t ($810 – 849/t) ex-factory, inclusive of taxes.
Market sentiments
Raw material market trends
The market stayed balanced between cost and demand factors, as firm semi-coke prices provided some cost support and limited further downside. While low inventory pressure at some silicon plants strengthened their willingness to maintain stable prices.
Downstream market trends
However, downstream demand remained weak as the October peak season came to an end. Steel mills were expected to reduce production amid narrowing profit margins, which further dampened procurement interest in ferro silicon.
Moreover, recent bidding prices continued to decline, limiting the market’s upward potential. With both buyers and sellers adopted a wait-and-see approach, the market remained in a state of stalemate.
ZCE futures price trends
Ferro silicon futures on China’s Zhengzhou Commodity Exchange (ZCE) inched up slightly by RMB 40/t ($6/t) w-o-w to RMB 5,580/t ($786/t) on 29 October, compared with RMB 5,540/t ($780/t) on 22 October.
Outlook
The ferro silicon market will likely remain volatile in the near term, as weak demand and steady semi-coke supply offer limited cost support. However, a potential recovery in demand or positive policy developments could lead to noticeable changes in the market.
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