China's ferro silicon prices remain stable amid favourable demand

Prices of ferro silicon with 72% silicon hovered at around RMB 6,570-RMB 6,670/t ($901-$915/t) ex-plant. On average, it's about RMB 6,620/t ($908/t). Whereas for ferro silicon with 75% silicon, the price hit higher around RMB 7,100 to RMB 7,200/t ($974-$987/t) ex-plant, with an average price of RMB 7150/t ($981/t).

The ferro silicon market remained stable this week. On the supply side, ferro silicon manufacturers were able to stabilise their operations because electricity prices have fallen.

Inventories have stayed low, which indicates sound sales, and because of this prices set by manufacturers have edged up slightly.

At the same time, demand for ferro silicon remains elevated. However, supply of ferro silicon is not enough to meet demand, and therefore most trades happened to fulfill urgent needs.

On the other hand, the big steel mills are willing to pay more for ferro silicon, and this is influencing other steel mills to buy more as well. This means demand is going up. Also, more ferro silicon factories are starting to produce more, and this will help meet demand.

Outlook

It is anticipated that the price of ferro silicon will go up slightly. An eye on the market needs to be kept as prices might rise moderately in the near future.

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