China: Ferro silicon prices inch down by $17/t w-o-w on declining transactions

Chinese ferro silicon prices remained weak this week as market transactions were impacted due to buyers' unacceptance of higher offers.

Grade 75% silicon: Prices shrank w-o-w by RMB 100/tonne ($14/t) to settle within a range of RMB 7,000-7,200/t ($977-$990/t) ex-works, including tax.

Grade 72% silicon: Prices were stable for this grade and at RMB 6,600-6,700/t ($908-$921/t) ex-works, including tax.

Market influenced by futures: The ferro silicon market has been significantly impacted by the futures segment. This influence has led to a noticeable decline in market transaction volumes.

Trader reluctance: A large number of traders were unwilling to purchase ferro silicon. This reluctance has contributed to a pervasive sense of pessimism within the market.

Concerns over off-season: With the industry's off-season approaching due to rains, insiders are worried about the futures market. It is crucial to monitor the subsequent bidding performance of key steel mills to gauge the market direction.

Ferro silicon futures inch down: China's Zhengzhou Commodity Exchange (ZCE) for September 2024 delivery of ferro silicon inched down w-o-w by RMB 56/t ($8/t) to RMB 6,694/t ($922/t) on 18 July, 2024 as against RMB 6,750/t ($930/t) on 11 July 2024.

Outlook

In the short term, ferro silicon demand and prices may rise post-steel mill biddings, but long-term growth is limited due to the ongoing downturn in the real estate and steel industries.

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