Chinese ferro silicon prices maintain stability amid weak demand

CBC: The ferro silicon market remained stable, with price levels holding steady despite some challenges.

Grade 72% silicon: Prices were unaltered w-o-w, with ex-factory, tax-inclusive quotes at RMB 6,030-6,220/tonne (t) ($831-858/t).

Grade 75% silicon: Prices slipped off by RMB 50/t ($7/t) for this grade, with quotes at RMB 6,540-6,730/t ($902-928/t).

Shrinking profit margins of steel enterprises: The ferro silicon prices were consistent. Despite a reduction in profits for steel enterprises, these profits were still considered substantial, and production enthusiasm remained average. However, attention must be given to whether downstream demand will continue to provide necessary support for market stability.

Slow downstream procurements: Traders' market expectations have not been met, as merchants report a lack of strong purchasing intent from downstream buyers. While there have been frequent inquiries, actual transactions have been relatively average.

Overall, the ferro silicon market exhibited a weak trend, with minimal price changes. The majority of purchases are on an on-demand basis, as most downstream companies take a cautious, wait-and-see approach.

Ferro silicon edge down: On 22 November 2024, the Zhengzhou Commodity Exchange (ZCE) for January 2025 delivery of ferro silicon inched down by RMB 80/t ($11/t) w-o-w to RMB 6,362/t ($877/t) from RMB 6,442/t ($888/t) on 21 November 2024.

Outlook

Weakened demand from key consuming sectors, coupled with cautious buyer sentiment, has further exacerbated the situation. As a result, the market is expected to remain subdued, with potential for further ferro silicon price adjustments and lower transaction volumes in near term.