China: Ferro silicon prices hold firm despite tepid downstream buying

• • Weak downstream procurement limits ferrosilicon trading activity

• • Supply-side maintenance underpins market price stability

China’s ferro silicon market remained stable w-o-w, with Si:75% prices holding steady at RMB 5,900-6,090/t ($871-899/t) exw, inclusive of taxes. Meanwhile, Si:72% prices were also unchanged at RMB 5,450-5,550/t ($805-819/t) exw, reflecting a largely balanced market.

Market remained range-bound as cautious steel procurement offset tightening supply expectations, keeping buyers and producers locked in stalemate.

Market updates:

Weak steel procurement restrains market activity: The domestic market continued to witness sluggish trading as steel mills refrained from centralized procurement, opting instead for need-based purchases. Persistent price suppression by downstream buyers limited spot market momentum, while traders largely adopted a wait-and-watch approach ahead of the next round of steel mill tenders, resulting in only sporadic transactions.

Supply discipline supports price stability: On the supply side, ongoing maintenance across major northwestern production hubs continued to tighten output expectations. With producers operating under margin pressure, resistance to low-priced sales remained firm, preventing further price declines despite subdued downstream demand and keeping the market balanced within a narrow trading range.

Outlook:

Ferro silicon prices are expected to fluctuate within a narrow range, with upcoming steel mill tenders, electricity tariff adjustments, and production resumptions likely to determine the market’s next direction.