China: Ferro silicon prices remain unchanged w-o-w amid limited demand

• Need-based purchases keep market subdued
  
  
• Stable FeSi prices lead to losses for producers
  
  

CBC: Chinese ferro silicon prices remained unchanged w-o-w amid weak demand and supply fluctuations.

Grade 72% silicon: Prices stood at RMB 5,980-6,170/tonne (t) ($816-842/t) ex-factory, inclusive of taxes.

Grade 75% silicon: Prices were at RMB 6,260-6,450/t ($854-880/t).

Market updates

Supply side remains cautious: The supply side remained cautious this week, with the traditional off-season underway and uncertainty about future market trends dampening confidence. Most merchants indicated stable sales, and manufacturers continued to produce based on previous orders. However, stable prices of ferro silicon led to significant losses for producers, who are still facing cost pressures.

Buyers make need-based purchases: On the demand side, engagement in the market was limited amid need-based buying. The impact of macroeconomic stimulus measures also seemed to be waning. As a result, downstream buyers maintained a cautious attitude towards procurement, contributing to a generally subdued market.

ZCE futures inch up w-o-w: On 9 January, prices on the Zhengzhou Commodity Exchange (ZCE) for March 2025 delivery edged up by RMB 48/t ($7/t) to RMB 6,346 ($867/t) from RMB 6,298/t ($859/t) on 2 January.

Outlook

As the Spring Festival nears, with steel mills reducing production and low expectations for winter storage, ferro silicon prices are expected to fluctuate. Downstream demand is likely to remain stable, but without significant supply changes, the market outlook remains uncertain in the near term.