China's ferro silicon prices drop w-o-w on uncertain market outlook

Ferro silicon prices dropped by RMB 50/t ($7) w-o-w as the market faced constant regression. Domestic ferro silicon prices (Si:72%) ranged between RMB 6,780-6,980/t ($931-958/t). The prices of ferro silicon (Si:75%) too declined with the same pace that hovered around RMB 7,180-7,380/t ($986-$1013/t). All listed prices include tax and are ex-works.

Even though the futures market showed major fluctuations, most traders in the industry paid attention to the new round of ferro silicon bidding by big steel companies. They were being cautious about it. The buyers wanted lower prices, but the factories were hesitant in selling at low prices.

The trading remained slow this week. Supply and demand stayed marginalised and there was news about production being stopped, reduced, and resumed. But overall, the market was stagnant.

The end-users of ferro silicon in the industry did not bought much as they were in a wait-and-watch approach. The supply side stayed as expected, but the demand from other countries was not so good. This made the buyers worried. The supply and demand sides have played a kind of game with each other. But the rise in the futures market has given some confidence to the spot market.

Outlook

In the short-term, the market might stay weak, and the prices might go bullish or bearish. A cautious approach is suggested while making decisions.

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