China's ferrosilicon prices trend down

Due to the decline in Magnesium ingot prices, a few producers have lowered their prices. However, as most producers have maintained stable prices, the mainstream transaction price of 75%min 200-500mm FerroSilicon in China remains steady compared to yesterday at 6,350-6,550 CNY/MT ex-factory cash. Industry insiders expect the mainstream transaction price of FerroSilicon in China to decline in the coming week.

A producer in Ningxia quoted 75%min 200-500mm FerroSilicon at 6,300 CNY/MT ex-factory cash today, with no room for negotiation. No inquiries have been received yet today. Yesterday, they sold 200 MTs at 6,300 CNY/MT. A customer inquired but wanted to purchase at 6,300 CNY/MT delivered price. After their request was rejected, the customer postponed their procurement plans. The producer revealed, "Last Friday, we sold around 200 MTs at 6,400 CNY/MT, but starting this week, we noticed customers rejecting prices higher than 6,300 CNY/MT. Therefore, we lowered our price on Tuesday." The producer stated that, considering the electricity cost of 0.48 CNY/kWh, they will maintain their current price for now and expect the mainstream transaction price of FerroSilicon in China to drop in the coming week. This producer has an annual production capacity of 150,000 MTs and plans to produce about 9,000 MTs in December, roughly the same as in November. They currently hold no inventory.

A consumer in Ningxia inquired about the price of 75%min 200-500mm FerroSilicon at 6,400 CNY/MT ex-factory cash today. Based on experience, they can obtain a concession of 30 CNY/MT, which is unchanged from yesterday. The consumer disclosed, "Due to the bearish outlook on FerroSilicon prices, I have postponed my procurement plan and plan to restock when the price drops to 6,300 CNY/MT." Last Friday, they purchased about 200 MTs at a cash price of 6,550 CNY/MT delivered, which included a freight cost of approximately 180 CNY/MT. The consumer expects that with the increasing occurrence of maintenance and production cuts at Magnesium plants, downstream demand will further decline, leading to a drop in the mainstream transaction price of FerroSilicon in China in the coming week.This consumer has an annual consumption capacity of 10,000 MTs and plans to consume about 300 MTs in December, half the amount in November. They currently hold about 300 MTs in inventory.