China's ferro silicon prices hold steady ahead of Spring Festival

The prices of ferro silicon in China remained unchanged this week as the market approached the upcoming Spring Festival, leading to cautious moves. Ferro silicon with 72% silicon was in the range of RMB 6,610 to 6,810/t ($933-$962/t), while ferro silicon with 75% silicon maintained prices at around RMB 7,010 to 7,210/t ($990-$1,018/t). All prices are ex-works, including tax.

The stability in prices can be attributed to the approaching Spring Festival, with steel mills showing less motivation to increase production. Additionally, confusion prevailed in the market regarding the winter storage policy.

Manufacturers of ferro silicon experienced reduced profits due to these factors, leading to hesitancy in further price reductions. However, the steel bidding prices provided a slight boost. Overall, the demand in the market appeared subdued.

Outlook

The ferro silicon market is currently influenced by uncertainty, with the potential for downward movement and a market that might face challenges related to supply and demand. In the short term, it is anticipated that the ferro silicon market will continue to exhibit weakness.

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