China: Ferro silicon prices remain firm despite prevailing market uncertainties

CBC: Chinese ferro silicon prices remained unchanged w-o-w, amid uncertainty, cautious market sentiments and declining demand.

Grade 72% silicon: Prices were unchanged w-o-w at RMB 5,980-6,170/tonne (t) ($819-845/t) ex-factory, inclusive of taxes.

Grade 75% silicon: Prices remained mostly steady w-o-w, with a slight decline of RMB 50/t ($7/t) to RMB 6,260-6,450/t ($858-884/t).

Market updates

Stable prices amid cautious market outlook: Ferro silicon prices remained stable amid a wait-and-see sentiment in the market. As demand enters the off-season, uncertainty increases, dampening market confidence. Merchants report stable sales, while manufacturers continue production based on prior orders. Despite this, the downward trend in prices still causes severe losses for producers, and cost support continues to be a key factor in sustaining the market.

Uncertainty and caution in downstream markets: The downstream market remains generally passive, with minimal speculative activity. Supply fluctuations are minor, but the anticipated decline in macroeconomic support is likely to reduce market optimism. As a result, purchasing activities are cautious, with players adopting a more conservative approach to procurement.

ZCE futures inch up w-o-w: On 2 January, prices on the Zhengzhou Commodity Exchange (ZCE) for February 2025 delivery inched up by RMB 78/t ($11/t) to RMB 6,298 ($863/t) from RMB 6,220/t ($852/t) on 26 December.

Outlook

With the Spring Festival approaching and maintenance halting production, ferro silicon demand stays steady. Limited supply increases and stable downstream demand suggest that prices will likely experience fluctuations during this seasonal transition period.