China: Ferro silicon market stable amid muted trading activity

Stable cost support underpins prices

Steel mills maintain cautious spot buying

Ferro silicon (Si 75%) prices in China remained unchanged w-o-w at RMB 6,0006,150/t ($880902/t) ex-factory, inclusive of taxes.

Meanwhile, Si 72% prices also held stable at RMB 5,4505,550/t ($800815/t) ex-factory.

Chinas domestic ferro silicon market remained stable, supported by firm electricity and semi-coke costs, while cautious downstream demand and limited procurement activity kept trading subdued.

Market updates

Stable costs continue to support market

Ferro silicon prices remained supported by unchanged electricity and semi-coke prices, helping stabilise production costs. On the supply side, producers maintained stable operations with manageable inventories and firm offers, limiting downside pressure.

Need-based demand keeps activity muted

Downstream steel mills continued need-based procurement, with no significant increase in buying volumes. Weak market activity and the absence of strong price drivers kept overall sentiment cautious and transactions limited.

Outlook

The ferro silicon market is expected to remain stable with narrow fluctuations in the near term. Firm cost support and manageable supply may continue to underpin prices, while weak steel demand and cautious procurement are likely to limit any meaningful upside.

(With inputs from CBC)