China: Ferro silicon prices stay flat w-o-w on controlled inventory level

CBC: Chinese ferro silicon prices remained stable amid gradual demand recovery. Inventory levels remained manageable, with traders acting cautiously, and market sentiment cautiously optimistic, Market participants are expecting stability with potential for slight improvement.

Grade 72% silicon: Prices were unchanged at RMB 5,860-6,030/t ($804-828/t) ex-factory, inclusive of taxes.

Grade 75% silicon: Prices remained flat at RMB 6,120-6,310/t ($840-866/t).

Market updates

Stable prices reflect market equilibrium: Ferro silicon prices remained steady, reflecting a delicate balance between cautious optimism and market fundamentals. Despite slow momentum, the terminal demand is gradually picking up, lending a layer of support to current pricing. The industry is closely monitoring the broader economic signals, with moderate confidence in the potential for sustained improvement.

Demand recovery builds momentum: While the pace of recovery in terminal demand is measured, the trend remains upward. Increased downstream inquiries and growing interest in pricing indicate that end-users are beginning to re-engage. This resurgence, though not yet robust, offers a glimmer of hope for producers and traders looking for signs of long-term market vitality.

Inventory pressure remains manageable: One of the defining features of the current ferro silicon market is the accumulation of inventory, though it has not yet reached alarming levels. Traders are proceeding with caution, adopting conservative strategies to manage stock and avoid overexposure. Profit-taking is being prioritized, with many opting to ship in moderation rather than risk potential volatility.

ZCE futures inch down: On 24 April, ferro silicon prices on the Zhengzhou Commodity Exchange (ZCE) for June 2025 delivery inched down by RMB 24/t ($3/t) w-o-w to RMB 5,658/t ($776/t) from RMB 5,682 ($780/t).

Outlook

In the near term, ferro silicon prices may remain stable with slight fluctuations, while long-term prospects improve gradually as production resumes, demand rises modestly, and supply-demand dynamics continue to re-balance.