Consistency persists in Chinese ferro silicon prices amid slow recovery

The market for ferro silicon remained stable as it paced up slowly. The factors that hold the market consistency were:

Largely stable prices:

75% silicon content: Prices remained unchanged this week reaching RMB 6,660-6,840/t ($920-$945/t) ex-works, including tax.

72% silicon content: Prices slightly declined by RMB 60/t ($8/t), settling in the range of RMB 6,270-6,460/t ($867-$893/t) ex-works, including tax.

Gradual recovery: The market witnessed a slow overall demand growth, and a subdued transaction atmosphere. This situation has led to a strong wait-and-see sentiment among market participants.

Low price offers: Traders offered low offers, leading to slow inventory consumption. Additionally, the weakening support from the cost side contributed to a loosening of actual transaction prices.

Steel mills, faced slow progress in raw material procurement, are also focusing on reducing costs, further intensifying the downward pressure on prices.

Sluggish demand: The market demand for ferro silicon remained poor, exacerbated by weakened support for raw material prices. The steel market, influenced by a plethora of negative factors, has been experiencing weakness with prices on a loosening trend.

Reports of some steel mills suspending production and reducing output became increasingly common.

Outlook

Given these multiple factors, it is anticipated that the market will persist in its weak development trend in the short term. This suggests that the challenges facing the ferro silicon market are likely to persist, with ongoing pressure on prices and subdued demand outlook.

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