China: Ferro silicon prices dip w-o-w amid muted market atmosphere, weak demand

Prices of ferro silicon in Chinese market have dipped by RMB 250/t ($34/t) this week.

Prices of various grades were:

Grade 75% silicon: Prices inched down by RMB 300/t ($41/t) w-o-w to settle within a range of RMB 7,100-7,300/t ($978-$1,005/t) ex-works, including tax.

Grade 72% silicon: Prices followed a similar trend, inching down by RMB 200/t ($28/t) w-o-w to establish a new range of RMB 6,800-7,000/t ($937-$964/t) ex-works, including tax.

Environmental concerns pressure prices: Ferro silicon prices dipped amid a cooling market atmosphere driven by energy-saving and carbon-reduction efforts.

The overall poor performance of the raw material further dampened the confidence of ferro silicon bulls, leading to a bearish trading environment.

Need-based purchases: Some traders made low-price purchases, inventory consumption remained slow, weakening the cost-side support.

Additionally, the bidding volume and price performance from steel mills stayed lacklustre, contributing to the overall market downturn.

Ferro silicon futures stable: China's Zhengzhou Commodity Exchange (ZCE) for September 2024 delivery of ferro silicon remained robust with a slight increase by RMB 16/t ($2/t) to RMB 7,118/t ($980/t) on 20 June, 2024 as against RMB 7,102/t ($978/t) on 13 June 2024.

Outlook

Ferro silicon prices are likely to see minor fluctuations, driven by limited low-priced supply and strong market support, suggesting a short-term uptrend in the industry's pricing sentiment.

Note: This article has been written in accordance with an agreement between CBC and BigMint.