China: Ferro silicon output inches down m-o-m in Jun’26, ending 3-month rise

• • 1% dip in output attributable to June having one fewer day than May

• • Daily output rises 3% on lower electricity costs, production resumption

Mysteel Global: China’s total ferro silicon production declined slightly in June to 483,296 t, down by 3,595 t (0.7%) m-o-m, ending the continuous increase seen over the previous three months, according to Mysteel’s monthly survey of 136 Chinese smelters.

The sampled smelters account for about 90% of China’s ferro silicon smelting capacity. The slight decline in total output was mainly attributable to June having one fewer day than May.

On a daily basis, however, ferro silicon output among the sampled smelters averaged 16,110 t/d last month, up by 403 t/d (2.6%) from m-o-m as per the survey.

Among the major production bases, Qinghai in Northwest China posted the sharpest on-month increase in percentage terms, as many local smelters resumed operations in June, benefiting from lower electricity costs driven by stronger hydropower supply during the wet season, which typically runs from late May to September.

Ferro silicon production in Gansu, also in Northwest China, increased significantly last month, mainly due to the commissioning of new smelting furnaces and the stable operation of recently commissioned facilities.

Meanwhile, several smelters in Northwest China’s Shaanxi resumed production in June after completing maintenance on their furnaces, further lifting local ferro silicon output, according to the survey.

Inventories held by Chinese ferro silicon producers continued to rise in June. Stocks at the 60 independent smelters under Mysteel’s tracking reached 72,680 t by end-June, up by 2,870 t (4.1%) from May. These smelters account for about 80% of China’s total ferro silicon smelting capacity.

China’s spot ferro silicon prices remained largely range-bound in June despite weakness in the futures market, as many domestic smelters were reluctant to lower offers further given their already thin profit margins.

As of 30 June, Mysteel assessed the spot price of 75% ferro silicon at RMB 5,635/t ($831/t), including the 13% VAT, up by RMB 6/t ($1/t) from a month earlier.

Meanwhile, Chinese ferro silicon futures prices weakened, with the most-traded September contract on the Zhengzhou Commodity Exchange closing the daytime session on 30 June at RMB 5,680/t ($838/t), down by RMB 140/t ($21/t) from its settlement price on 29 May, according to exchange data.

For July, ferro silicon output among the sampled smelters is expected to increase, as more producers in Qinghai plan to resume operations amid competitive electricity prices. Additional output is also likely as some smelters in Shaanxi restart following maintenance, while newly commissioned furnaces in Gansu are expected to achieve stable production.

However, demand from downstream steelmakers and magnesium producers may weaken this month, as many are expected to carry out maintenance in response to thinning profit margins and rising product inventories. This could put downward pressure on China’s ferro silicon prices later in July, Mysteel’s survey suggested.

Note: This article has been published in accordance with a content exchange agreement between Mysteel Global and BigMint.