Chinese ferro silicon prices inch up on optimistic market environment

The ferro silicon prices crawled up by RMB 100/t ($14/t) this week. The positive shift in the market happened due to a boost in demand.

Increase in prices w-o-w:

• Grade 75% silicon: Prices increased by RMB 100/t ($14/t) to settle within a range of RMB 7,310-7,490/t ($1,012-$1,037/t) ex-works, including tax.
  
  
• Grade 72% silicon: Prices followed a similar trend, rising by RMB 100/t ($14/t) to establish a new range of RMB 6,870-7,060/t ($951-$977/t) ex-works, including tax.
  
  

Factors that lifted the market were:

Improved trades: It seemed like there was a positive trend in the ferro silicon market. With firm spot prices, improved demand, and raised tender prices, there's a boost in industry confidence. Compared to earlier in the month, trades have increased, and there's anticipation for potential release of terminal demand in May.

Major steel mills have initiated and finalized new rounds of ferro silicon bidding, resulting in a relatively passive stance from steel mills in price setting, while manufacturers were motivated to raise prices.

Acceptance of higher priced materials: Market participants were hesitant to buy goods at low prices, which led to an upward climb in market quotations. The acceptance of high prices increased, making it challenging to find low-priced goods in the market. This indicated a strong and bullish sentiment in the ferro silicon market.

Outlook:

The tight spot inventory, suggests that the ferro silicon market may remain robust in the short term. Meanwhile monitoring the demand in stainless steel and high-priced transactions is suggested for near term price trajectory.

Note: This article has been written in accordance with an agreement between CBC and BigMint.