China: Ferro silicon prices inch down w-o-w amid weak demand
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- Cautious trading persists, inventories rise
- ZCE future decline slightly by $8/t w-o-w
CBC: Chinese ferro silicon prices edged down w-o-w amid sluggish demand, though buying interest improved slightly from last week. Cautious trading persisted, and inventories rose, though improving terminal demand and rising downstream inquiries led to a largely steady market.
Grade 72% silicon:Prices inched down by RMB 65/tonne (t) ($9/t) w-o-w to RMB 5,800-5,960/t ($805-827/t) ex-factory, inclusive of taxes.
Grade 75% silicon:Prices edged down by RMB 70/t ($10/t) w-o-w to RMB 6,050-6,240/t ($840-866/t).
Market recap
Market remains steady w-o-w: The ferro silicon market remained largely stable, amid an incremental pick-up in demand, though it remained weak overall. Despite the slow pace of recovery, there is cautious optimism in the market surrounding a potential rebound in downstream demand and support from domestic macroeconomic factors. Inventory levels continued to build, prompting traders to adopt a conservative approach, focusing on controlled shipments and timely profit-taking to manage risks.
End-user demand shows gradual recovery: Meanwhile, terminal demand showed a slow but steady improvement. Downstream buyers became more active, with a notable uptick in inquiries and price discussions. Although inventory pressure persisted, it remained manageable. Overall market sentiment was cautious, but expectations leaned towards stable operation in the near term.
ZCE futures inch down: On 21 May, ferro silicon prices on the Zhengzhou Commodity Exchange (ZCE) for July 2025 delivery inched down by RMB 58/t ($8/t) w-o-w to RMB 5,620/t ($780/t) from RMB 5,678 ($788/t).
Outlook
In the short term, the ferro silicon market is expected to remain stable, with slight price adjustments. Meanwhile, the supply and demand conditions for ferro silicon are expected to improve gradually. However, overall, the ferro silicon market is expected to remain steady.
