Chinese ferro silicon market remains stable on lower trades

CBC: Ferro silicon prices in China remained largely stable with minimal fluctuations. Prices inched up by RMB 100/tonne (t) (14/t) w-o-w amid low trades and a sluggish market.

Grade 72% silicon: Prices remained unchanged, with ex-factory, tax-inclusive quotes at RMB 6,230-6,420/tonne (t) ($875-902/t).

Grade 75% silicon: Prices were stable for this grade too, with quotes at RMB 6,790-6,980/t ($953-980/t).

• Trade volumes diminish: Ferro silicon prices remained largely stable, with reduced trading volumes despite numerous inquiries. Market confidence declined, which contributed to a pessimistic outlook.
  
  
• Declining profit margins: Manufacturers are facing shrinking profit margins, and reports indicate maintenance and production cuts in key areas. Coupled with an overall high supply and downward fluctuations in the futures market, multiple negative factors suggest that the ferro silicon market is likely to continue being weak in the near term.
  
  
• Ferro silicon futures rise: On 17 October 2024, the Zhengzhou Commodity Exchange (ZCE) for January 2025 delivery of ferro silicon increased by RMB 238/t ($33/t) w-o-w to RMB 6,624/t ($930/t) from RMB 6,386/t ($897/t) on 10 October 2024.
  
  

Outlook

Ferro silicon prices are expected to fluctuate in the near term due to speculative market behaviour. A significant rise seems unlikely, but with a gradual recovery in demand, prices may edge up in the long term.