Chinese ferro silicon prices remain stagnant

Ferro silicon prices in China stayed steady this week amid futures impact and declined market transactions.

Prices of various grades were as below:

Grade 75% silicon: Prices remained unchanged w-o-w to settle within a range of RMB 7,100-7,200/t ($977-$990/t) ex-works, including tax.

Grade 72% silicon: Prices followed a consistency for this grade also to settle at RMB 6,600-6,700/t ($908-$921/t) ex-works, including tax.

Factors driving market were:

Futures stagnate ferro silicon market: Ferrosilicon prices remained unchanged this week. The market has been impacted by the futures market, resulting in a decline in transaction volumes. Many traders were hesitant to purchase, creating a pessimistic atmosphere.

As the industry prepares for the off-season amid the monsoon, concerns arise about future market dynamics. Key focus is recommended on monitoring bidding activities of major steel mills to anticipate forthcoming trends and their potential impact on the market.

Ferro silicon futures decline: China's Zhengzhou Commodity Exchange (ZCE) for September 2024 delivery of ferro silicon decreased w-o-w by RMB 268/t ($37/t) to RMB 6,750/t ($929/t) on 11 July, 2024 as against RMB 7,018/t ($966/t) on 4 July 2024.

Outlook

In the short term, ferro silicon demand and prices are expected to rise with steel mill bidding. However, long-term growth is limited due to the continued downturn in real estate and building materials markets, impacting the overall steel industry.

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