China: Ferro silicon prices remain stable on sluggish market dynamics

Ferro silicon prices remained constant this week, with no major swings. Domestic ferro silicon prices (Si:72%) hovered at around RMB 6,830-7,030/t ($933-961/t). The prices of ferro silicon (Si:75%) remained the same at RMB 7,230 to 7,430/t ($988-$1015/t). All listed prices include tax and are ex-works.

The supply-demand situation has not improved significantly, and production has been cut. However, there is some hope that production may resume. Given the fact that overall supply has gradually dropped, market demand was ordinary.

Some traders in the business remained less confident as they were cautious. Moreover, the market performed quietly amid the slightly uncertain attitude of traders. As there are no apparent factors sustaining the market, the ferro silicon segment has remained weak.

On the spot side, demand may increase, but the market is wary. The factories are not eager to offer prices like before.

Looking forward, the futures market went up, boosting industrial confidence. However, downstream steel companies did not make strong profits. There were reports of output reduction for maintenance. All of these factors caused the market to remain nearly stable at the lower levels.

Outlook

It is expected that prices in the ferro silicon market will be constant due to cost support.

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