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Chinese ferro silicon prices remain firm on sluggish market activity

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Ferro Silicon
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27 Jun 2024, 13:41 IST
Chinese ferro silicon prices remain firm on sluggish market activity

Prices of ferro silicon in Chinese market stayed steady w-o-w despite increased demand and production.

Prices of various grades were:

Grade 75% silicon: Prices remained static w-o-w to settle within a range of RMB 7,100-7,300/t ($977-$1,004/t) ex-works, including tax.

Grade 72% silicon: Prices followed a similar trend, stayed unchanged w-o-w to RMB 6,800-7,000/t ($936-$963/t) ex-works, including tax.

Rising costs, production keep prices stable: The recent increase in demand for steel mill bids has led some producers to raise their prices due to higher semi-coke and electricity costs. Meanwhile, factory resumptions in certain areas have caused a slight rise in overall output. Despite this, market activity remained sluggish, as downstream buyers resisted high prices and traders took a wait-and-see approach, keeping ferro silicon prices steady.

Ferro silicon futures down: China's Zhengzhou Commodity Exchange (ZCE) for September 2024 delivery of ferro silicon declined by RMB 234/t ($32/t) to RMB 6,884/t ($947/t) on 27 June, 2024 as against RMB 7,118/t ($979/t) on 20 June 2024.

Outlook

It is anticipated that short-term demand spikes due to bidding and pricing by steel mills may drive ferro silicon prices up. However, in long-term stagnation in real estate and steel industry underperformance will constrain growth.

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

27 Jun 2024, 13:41 IST

 

 

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