China: Ferro silicon prices remain firm amid uncertain demand

CBC: Chinese prices of ferro silicon Si: 75% and Si: 72% grades, tags remained unchanged, with the market continuing its downward trend.

Grade 72% silicon: Prices were unchanged w-o-w at RMB 6,030-6,220/tonne (t) ($830-856/t) ex-factory, inclusive of taxes.

Grade 75% silicon: Prices for this grade also remained unaltered in the range of RMB 6,410-6,600/t ($882-908/t).

Market updates

Uncertain demand prevails: This week, prices for ferro silicon were unchanged and industry participants were hesitant, lacking strong confidence due to uncertain demand dynamics. While the market remains cautious, the likelihood of significant price adjustments appears low in the short term, given the current economic and industry conditions.

ZCE futures inch up: On 12 December, prices on the Zhengzhou Commodity Exchange (ZCE) for February 2025 delivery inched up by RMB 70/t ($10/t) w-o-w to RMB 6,302/t ($867/t) from RMB 6,232/t ($8858/t) on 5 December.

Outlook

Steel mills' demand for ferro silicon remains sluggish, with bidding set to begin in December, potentially driving seasonal inventory replenishment. Spot market inventories are rising, while current bidding prices offer little support for a market rebound. In the short term, the ferro silicon market is expected to remain weak, with limited upward momentum.