China: Ferro silicon prices remain stable amid limited trading

CBC: Grade 72% silicon: Prices remained stable with ex-factory, tax-inclusive quotes ranging from RMB 6,300-6,400/tonne (t) (USD 879-893/t), averaging RMB 6,350/t (USD 886/t), unchanged from the previous day.

Grade 75% silicon: The market also saw stable pricing for this grade, with quotes remaining at RMB 6,820-6,900/t (USD 952-963/t), averaging RMB 6,860/t (USD 957/t), with no change from yesterday.

Production cuts, market sentiments: Despite multiple inquiries, trading volume remained low, reflecting further declines in market confidence. The mood in the ferro silicon sector is subdued as manufacturers faced shrinking profit margins, leading to reports of renewed production cuts and maintenance in key areas. High supply and downward fluctuations in the futures market, driven by negative factors, have added further pressure.

Outlook

As macroeconomic policies continue to support the market and terminal demand gradually recovers, ferro silicon prices are expected to see a slight upward adjustment. However, in the short-term, significant price rises are unlikely, though temporary volatility could occur due to market sentiment and speculative activity.

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