China: Ferro silicon prices remain steady w-o-w amid cautious market anticipation

The prices of ferro silicon in China held stable as the overall market atmosphere followed a wait and watch approach. Ferro silicon with 72% silicon was in the range of RMB 6,610 to 6,810/t ($935-$963/t), while ferro silicon with 75% silicon were at around RMB 7,010 to 7,210/t ($991-$1,020/t). All prices are ex-works, including tax.

This week, the spot price of ferro silicon showed no significant change. The previous week witnessed a 6.2-magnitude earthquake in Jishishan County, Linxia, Gansu, causing damage to the main transformer and other equipment in the Qinghai Power Grid substation. To ensure uninterrupted electricity for earthquake relief efforts, Qinghai Power Grid requested companies to reduce their electricity usage. Although this had a minor impact, the ferro silicon market remained relatively stable.

The steel plant bidding for December concluded, and the bidding for January has not started yet. So, traders were cautious and waited to see what happens next.

Going forward, ferro silicon companies will have refrained from making significant production changes, contributing to the balanced dynamics of supply and demand in the market.

Outlook

Manufacturers, considering production costs and profit margins, are hesitant to reduce prices for shipments. This stability is anticipated to persist for some time, leading to a potential standstill in the ferro silicon market.

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