China: Ferro silicon market faces pressure amid high steel supply, weak sentiments

CBC: Prices of Chinese ferro silicon prices remained stable despite a subdued market environment.

Grade 72% silicon: Prices remained consistent with ex-factory, tax-inclusive quotes ranging from RMB 5,940-6,130/tonne (t) ($847-874/t).

Grade 75% silicon: Prices were steady for this grade too, with quotes at RMB 6,600-6,780/t ($941-967/t).

Market pessimism persists: Prices of ferro silicon today continued to remain stable, amid lesser number of inquiries and insufficient trading volumes. Confidence in the ferro silicon market has been further down this week.

Production cuts further suppress market: Profit margins of manufacturers continued to shrink, and mills reported maintenance and production cuts again; coupled with the overall supply at a relatively high level. The futures market fluctuated downward amid negative factors.

Ferro silicon futures largely stable: On 26 September, 2024, the Zhengzhou Commodity Exchange (ZCE) for January 2025 delivery of ferro silicon remained largely stable with prices inched up by RMB 42/t ($6/t) to RMB 6,266/t ($894/t) w-o-w, from RMB 6,224/t ($888/t) on 19 September, 2024.

Outlook

Short-term fluctuations, driven by poor market sentiment, is expected, making significant price increases unlikely in the near future.