China FerroSilicon Market Trends

Currently, downstream consumers are maintaining regular procurement, with the mainstream transaction price for Chinese ferrosilicon (75% min, 200-500mm) concentrated at 6,300-6,500 CNY/MT ex-works cash, unchanged from yesterday. Industry insiders predict that the price of Chinese ferrosilicon will remain stable over the next week.

"We are quoting 6,400 CNY/MT delivered cash to nearby magnesium plants for ferrosilicon (75% min, 200-500mm) today, the same as yesterday. The lowest price we can accept is 6,300 CNY/MT," revealed a producer in the northwest region. The producer added that customers inquiring today expressed a wait-and-see attitude for procurement next week. Yesterday, they sold about 100 MTs at a price of 6,350 CNY/MT, while the same customer purchased another 300 MTs from Qinghai at the same price. The producer expects that, as producers stabilize prices to ensure steady sales, the mainstream transaction price for Chinese ferrosilicon will remain stable over the next week. The producer has an annual production capacity of 60,000 MTs and plans to produce approximately 2,500 MTs in December, the same as in November. They currently hold an inventory of about 200 MTs.

A consumer in Shaanxi inquired about the price of ferrosilicon (75% min, 200-500mm) from a local producer today and received quotes around 6,300-6,400 CNY/MT delivered cash, unchanged from yesterday. "Even for procurement volumes exceeding 500 MTs, we cannot secure a price below 6,300 CNY/MT," the consumer revealed, adding that they purchased 800 MTs last weekend at a price of 6,300 CNY/MT. The consumer expects that, as producers maintain stable pricing, the price of Chinese ferrosilicon will stay at current levels over the next week. The consumer has an annual consumption capacity of 24,000 MTs and plans to procure about 2,000 MTs in December, the same as in November. Their current inventory is about 400 MTs.