Chinese ferro silicon prices decline amid soft demand

The ferro silicon market experienced a downturn this week, characterized by several contributing factors:

1.Price Decline:

• 72% silicon content: Prices witnessed a significant dip of RMB 80/t ($11/t) w-o-w, settling in the range of RMB 6,430-6,630/t ($894-$922/t) ex-works, including tax.
  
  
• 75% silicon content: Prices decreased by RMB 40/t ($6/t) w-o-w, reaching RMB 6,870-7,050/t ($955-$980/t) ex-works, including tax.
  
  

2.Subdued spot market: Limited trading activity weakened market dynamics, preventing significant price movements. Futures market activity was also restricted, with prices fluctuating within a narrow range.

3.Muted steel market demand: Steel mills exhibited low buying interest, reflected in weak bidding and purchase prices. Retail purchases were primarily driven by immediate needs, indicating a lack of robust demand.

4.Relatively stable stainless steel market: Despite temporary production stoppages or reductions at some plants due to holidays, the stainless steel market functioned comparatively smoothly compared to the downturn in the ferro silicon market.

Overall, the confluence of declining prices, subdued spot market activity, weak demand from the steel sector, and a relatively stable stainless steel market contributed to the downturn in the ferro silicon market this week.

Outlook

Limited demand from the stainless steel sector and a cautious market sentiment are expected to keep ferro silicon transaction performance average in the near future.

The focus has shifted towards observing the performance of the upcoming steel recruitment round, potentially leading to short-term volatility in the ferro silicon market.

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