China: Ferro silicon prices remain firm w-o-w ahead of festive holidays

CBC: Chinese ferro silicon prices remained unaltered w-o-w as the market moved slow due to the upcoming spring holidays.

Grade 72% silicon: Prices stood firm w-o-w at RMB 5,980-6,170/tonne (t) ($821-847/t) ex-factory, inclusive of taxes.

Grade 75% silicon: Prices were at RMB 6,260-6,450/t ($859-885/t), unchanged w-o-w.

Market updates

Limited fluctuations on spring festivities: As the Spring Festival nears, the ferro silicon market remains stable with unchanged prices. The pressure for price reductions before the New Year has eased, reflecting stagnant market atmosphere. Many players have entered an early holiday mode, reducing market activity.

Downstream Stocking Completed: Most downstream industries have finished their stocking before the holiday, and the focus has shifted to waiting for the upcoming break. This has contributed to a quieter market atmosphere, with limited movements in prices.

ZCE futures inch down w-o-w: On 23 January, prices on the Zhengzhou Commodity Exchange (ZCE) for March 2025 delivery edged down by RMB 138/t ($19/t) w-o-w to RMB 6,342 ($870/t) from RMB 6,346/t ($889/t) on 16 January.

Outlook

The ferro silicon market is likely to remain stable in the near term, with limited price adjustments expected. The supply-demand balance continues to improve, though weakening margins and rising transportation costs due to the Spring Festival may impact demand slightly.