China: Ferro silicon market remains stable amid balanced fundamentals, stable demand

Prices remain largely stable w-o-w

Stable demand and cost support underpin market

Ferro silicon (Si 75%) prices in China remained unchanged w-o-w at RMB 6,0006,150/t ($888902/t) ex-factory, inclusive of taxes.

Meanwhile, Si 72% prices also remained broadly stable, easing marginally to RMB 5,4505,550/t ($800814/t), from RMB 5,6005,750/t ($821843/t) earlier

Chinas domestic ferro silicon market remained stable, as balanced supply-demand dynamics and stabilised steel mill bids supported sentiment, offsetting earlier price weakness.

Market updates

Stable costs and sentiment support market

Domestic ferro silicon prices held steady, supported by relatively stable costs and firm steel mill bidding prices, which helped stabilise market expectations. Futures prices strengthened slightly, lending additional support to sentiment.

On the supply side, production remained steady, while high inventory levels continued to persist, limiting upward momentum.

Steady demand keeps activity limited

Downstream demand remained stable, with steel mills continuing need-based procurement. Transactions were mainly small-volume, while overall trading activity stayed subdued amid sufficient inventories.

Market participants maintained a cautious approach, with limited changes in supply-demand dynamics.

Outlook

The ferro silicon market is expected to remain stable with narrow fluctuations in the near term. While cost support and steady demand will underpin prices, high inventory levels and limited procurement growth may cap any upside.

(With inputs from CBC)