China's ferro silicon prices remain range-bound amid recovering demand

Prices for ferro silicon (Si: 72%) remained stable at RMB 6,680 to 6,780/t ($915-$930/t) in China. On average, prices are at RMB 6,730/t ($923/t). On the other hand, prices for ferro silicon (Si: 75%) are also functioning well at RMB 7,160 to 7,260 /t ($982-$995/t) in China. On average, prices are at RMB 7,210/t ($988/t). The ferro silicon market stays firm and unchanged.

The steel mills are back in action as they resume their operations which was paused earlier. Also, steel mills have low inventory levels, which connotes they do not have much extra ferro silicon lying around.

Similarly, the manufacturers have slowly increased their production rates. However, they still have a lot of inventory left. The demand for ferro silicon is recovering slowly but it is not back to normal levels just yet.

As the steel mills continue to operate and demand for steel increases, the demand for ferro silicon will also go up which signifies that the prices for ferro silicon might rise moderately in the coming days.

Outlook

In the long run, the operating rate of ferro silicon companies will stabilise, and the demand for ferro silicon will return to normal levels which indicates that the prices of ferro silicon are expected to remain in good shape in the long-term.

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