Chinese ferro silicon prices decline on dull demand

The price of ferro silicon in China went down this week by RMB 130/t ($18/t) as the demand remained frail. Ferro silicon with 72% silicon ranged between RMB 6,650 to 6,850/t ($937-$966/t). Another type of ferro silicon, with 75% silicon, also dropped in price at around RMB 7,050 to 7,250/t ($994-$1,022/t).

The demand for ferro silicon stayed unimproved as most traders purchased what they needed, instead of stocking up. Manufacturers don't have a lot of extra ferro silicon sitting around.

The market remained just okay as it was also the off-season, so traders were not doing a lot of business. A wait and see approach is suggested for what will happen in December.

Outlook

The market might not be very active, and manufacturers might have extra ferro silicon they need to sell at lower prices. So, for now, it looks like the ferro silicon market will continue to be weak.

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