Chinese ferro silicon prices decline w-o-w on production cuts, lower trades

CBC: Prices of Chinese ferro silicon declined w-o-w on a pessimistic market atmosphere.

Grade 72% silicon: Prices declined with ex-factory, tax-inclusive quotes ranging from RMB 6,100-6,300/tonne (t) ($ 855-883/t), down by RMB 150/t ($21/t).

Grade 75% silicon: Prices inched down by RMB 50/t ($7/t) for this grade, with quotes at RMB 6,720-6,900/t (USD 942-967/t).

Manufacturers struggling on deal conclusion as market slumps: The ferro silicon market remained dull w-o-w, with prices taking a downward path. Despite numerous inquiries, trading volumes were low, which reflected a further decline in market confidence. The overall sentiment remained quite pessimistic, as manufacturers continue to see their profit margins shrink.

Industry under pressure from multiple factors: It has been noticed in the market that maintenance works and production cuts in key manufacturing areas of ferro silicon have emerged, adding to the challenges. Additionally, high supply levels and a downtrend in the futures market compounded the situation, leading to the expectation that the ferro silicon market will remain weak and continue to consolidate in this unfavourable position.

Ferro silicon futures largely stable: On 22 August, 2024, the Zhengzhou Commodity Exchange (ZCE) for October 2024 delivery of ferro silicon remained largely stable, with a slight decline of RMB 10/t ($1/t) w-o-w, falling to RMB 6,328/t ($887/t) from RMB 6,338/t ($889/t) on 15 August, 2024.

Outlook

Short-term fluctuations in Chinese ferro silicon prices are anticipated, primarily influenced by market sentiment and speculative activity. However, substantial price increases are not expected in the near- term.