Chinese ferro silicon prices remain stable amid cautious trading sentiment

Ferro silicon prices in China saw a marginal increase by RMB 20/t ($3/t). Prices are stable due to a careful market environment.

Slight increase in prices:

• Grade 75% silicon: Prices increased by RMB 20/t ($3/t) to settle within a range of RMB 7,570-7,750/t ($1,066-$1,091/t) ex-works, including tax.
  
  
• Grade 72% silicon: Prices followed a similar trend, inching up by RMB 20/t ($3/t) to establish a new range of RMB 7,130-7,320/t ($1,004-$1,031/t) ex-works, including tax.
  
  

Prices hold steady despite growing demand: The price of ferro silicon remains stable, showing no significant change compared to last week. Despite the uptick in demand and price adjustments, market activity remains subdued. Although some regions have resumed factory operations, leading to a slight increase in overall output, this has not substantially energised the market.

Lack of acceptance of higher quotes: Some producers raised their market quotations for ferro silicon, citing higher costs of semi-coke and electricity as primary factors. But downstream buyers showed resistance to higher prices, and many traders adopted a wait-and-see approach, contributing to the cautious market atmosphere.

Outlook

In the short term, it is anticipated that rising demand and pricing in steel mills will boost ferro silicon market activity. However, in the long term, the struggling real estate and steel sectors may affect the market.

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