China: Ferro silicon prices remain flat amid seasonal steel slowdown

• Tight supply supports market stability
  
  
• Buyers cautious, avoid large-scale restocking
  
  

Ferro silicon (Si:75%) prices in China stayed stable w-o-w at RMB 6,090-6,240/t ($899-921/t) exw, inclusive of taxes.

Meanwhile, Si:72% prices also remained steady at RMB 5,630-5,740/t ($831-847/t) exw.

Prices remained unchanged, supported by tight spot availability and stable steel mill bids amid cautious demand.

Market updates

Tight supply supports market stability: Limited inventory pressure among producers and restricted availability of low-priced material in some regions helped maintain market stability. Spot supply remains relatively tight, preventing significant downward price movement. In addition, several steel mills have released June procurement tenders at broadly stable levels, providing confidence and reinforcing price support.

Demand weakness caps upside potential: Despite supportive supply conditions, seasonal weakness in the steel sector continues to weigh on consumption. End-user demand growth remains limited, while downstream buyers adopt a cautious procurement approach and avoid large-scale restocking. As a result, market sentiment remains measured, restricting upward price momentum and keeping ferro silicon prices unchanged overall.

Outlook

China's ferro silicon market is expected to trade within a narrow range, supported by production costs but capped by weak steel demand and rising supply. Steel mill tender prices and production resumptions in Ningxia and Qinghai will remain key market indicators.

(With inputs from CBC)