China: Ferro silicon prices remain flat w-o-w amid cautious market sentiment

• Muted demand, weaker cost support limit price growth
  
  
• ZCEfutures (Apr'26 deliveries) increase by $32/t
  
  

Ferro silicon (Si 75%) prices in China held steady w-o-w at RMB 5,260-5,500/t ($769-804/t) ex-factory, inclusive of taxes. Similarly, Si 72% prices remained unchanged at RMB 5,750-5,900/t ($840-862/t) ex-factory, inclusive of taxes.

Prices remained steady over the week, as muted demand and weaker cost support limited upward price momentum. Weak downstream procurement and high inventories kept transactions subdued, sustaining cautious market sentiment.

Market updates

Prices remain stable amid subdued demand conditions: The market remained largely stable throughout the week. On the cost side, lower semi-coke prices in some producing regions reduced production costs and weakened overall cost support for ferro silicon, which limited upward price momentum.

Downstream stainless steel mills maintained high inventory levels, and their anticipated post-holiday procurement demand did not fully materialise. Market activity was largely limited to price inquiries, while actual transactions remained weak.

As a result, several producers faced rising inventory pressure, which limited their ability to adjust prices upward. Overall, market sentiment remained cautious, with participants holding mixed and uncertain expectations about near-term trends.

ZCE futures inch up w-o-w: Ferro silicon futures for April 2026 delivery on China's Zhengzhou Commodity Exchange (ZCE) increased by RMB 216/t ($32/t) to RMB 5,720/t ($836/t) on 27 February from RMB 5,504/t ($805/t) on 13 February.

Outlook

Chinese ferro silicon prices are expected to remain largely stable in the near term. Market sentiment will likely stay cautious, with participants focusing on steel mill tender prices and the pace of downstream demand recovery.

(With inputs from CBC)