China: Ferro silicon prices inch down amid weaker market sentiment

Prices of China's ferro silicon saw a slight decline on pale market sentiments.

Slight decrease in prices:

Grade 75% silicon: Prices inched down by RMB 85/t ($12/t) to settle within a range of RMB 7,500-7,650/t ($1,035-$1,056/t) ex-works, including tax.

Grade 72% silicon: Prices followed a similar trend, inching down by RMB 15/t ($2/t) to establish a new range of RMB 7,120-7,300/t ($983-$1,008/t) ex-works, including tax.

Factors impacting prices:

Energy measures cool market: This price decline can be attributed to the ongoing energy-saving and carbon-reduction initiatives that have been intensifying over the past week. These measures have led to a cooling market atmosphere, particularly impacting the confidence of ferro silicon market players.

Poor raw material market: The raw materials market also performed poorly, contributing to a bearish trading environment. As a result, some traders purchased at lower prices, but inventory consumption remains slow. The weakened cost support has led to looser actual transaction prices, and steel mills exhibited poor bidding volume and price performance.

Optimistic steel market: Furthermore, with anticipated increases in cost support, many industry players remain confident, fostering a strong sentiment for maintaining higher prices. The reluctance to sell at low prices is evident, and market quotations have been adjusted upwards, making low-priced sources increasingly scarce.

Outlook

In the short term, ferro silicon prices may experience slight fluctuations. The interplay between market demand, inventory levels, and cost factors will continue to influence price movements.

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