Chinese ferro silicon prices remain largely stable despite poor market atmosphere

CBC: Chinese ferro silicon prices remained largely stable this week on subdued market sentiments.

Grade 75% silicon: Prices were unchanged w-o-w and settled within a range of RMB 6,920-7,020/tonne (t) ($956-$969/t) ex-works, including tax.

Grade 72% silicon: Prices remained largely stable for this grade, inching down by RMB 85/t ($12/t) to RMB 6,300-6,450/t ($870-$891/t) ex-works, including tax.

Subdued trading atmosphere: The price of ferro silicon (Si: 72%) declined slightly, while the price of ferro silicon (Si: 75%) remained stable. Energy-saving and carbon reduction initiatives have cooled the market atmosphere. The poor performance across the black series (raw materials) has dampened bullish confidence, creating a bearish trading environment.

Slow steel bidding: Low-price purchases by traders and slow inventory consumption have weakened cost-side support. Actual transaction prices were loose, and steel mills' bidding volumes and price performances remained poor.

Ferro silicon futures dip: China's Zhengzhou Commodity Exchange (ZCE) for September 2024 delivery of ferro silicon inched down w-o-w by RMB 48/t ($7/t) to RMB 6,704/t ($926/t) on 1 August, 2024 as against RMB 6,752/t ($932/t) on 25 July 2024.

Outlook

Overall, it seems that the Chinese ferro silicon market is adopting a wait-and-see approach, with an expectation of improvement in steel demand and inventory consumption. It is anticipated that, ferro silicon prices may experience minor fluctuations in the near-term.

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