Chinese ferro silicon functions moderately ahead cautious market outlook

Ferro silicon prices stayed firm this week as the market ran with minor fluctuations and cautious market outlook approach. Domestic ferro silicon prices (Si:72%) ranged between RMB 6,780-6,980/t ($934-961/t). The prices of ferro silicon (Si:75%) too remained unchanged that hovered around RMB 7,180-7,380/t ($989-$1017/t). All listed prices include tax and are ex-works.

Ferro silicon market operated pretty stable this week as the market hasn't witnessed any significant fluctuations. However, there were still some uncertainties because the iconic steel company's ferro silicon bidding price for November hasn't been decided yet, and all eyes are on it.

This created a cautious atmosphere in the industry. So, even if some buyers wanted to make purchases, they should be careful and wait for more information. It is suggested to see how things develop in the near future.

Looking ahead, there were few things to consider. Some factories faced financial pressure, so they got motivated to lower prices and sell their goods. This could affect the confidence of the industry a bit.

Additionally, as we enter the winter heating period, coal usage and environmental protection requirements might have an impact. The increase in coke prices is also something to keep in mind. All of these factors could affect the market sentiment and policies.

Outlook

In the short term, we might see the ferro silicon market continue to stabilize. We'll have to wait for guidance from a new round of steel mill bidding to get a clearer picture.

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