The Chinese FerroSilicon market is experiencing sluggish transactions

The Chinese FerroSilicon market has seen sluggish transactions recently, constrained by weak demand from downstream industries. The mainstream spot transaction price for Chinese FerroSilicon (75%min, 200-500mm) is 6,500-6,700 CNY/MT, EXW Price, cash payment, which is unchanged from the beginning of the week. Since the start of the week, the Chinese FerroSilicon market has been in a stalemate. On one hand, manufacturers are facing rising production costs due to higher prices of raw material blue coke, leading them to maintain current price offers. On the other hand, demand from downstream markets remains weak, with industry insiders expecting FerroSilicon prices to remain stable in the near future.

A producer in Shaanxi revealed that today's spot price for 75%min, 200-500mm FerroSilicon is 6,550 CNY/MT, EXW Price, cash payment, and they are not accepting any form of price negotiation. This price has remained unchanged throughout the week. Today, they sold 120 MTs of spot FerroSilicon at this price, and earlier on Monday, they sold 150 MTs at the same price. The producer remarked, "Recently, due to the high cost of blue coke, we are facing losses in FerroSilicon production, with prices inversely impacted. The factory is under pressure to produce and is unwilling to sell at lower prices." The producer expects FerroSilicon prices to remain stable in the short term, as there is little room for prices to fall due to cost pressures, even though downstream demand has weakened.

This company has an annual production capacity of 75,000 MTs, and it plans to produce 3,900 MTs in September, the same as in August. Currently, they have no inventory.

Another producer in Shaanxi reported that today's spot price for 75%min, 200-500mm FerroSilicon is 6,700 CNY/MT, delivered with cash payment. There were no orders today, but yesterday, they sold five truckloads at 6,650 CNY/MT, including a delivery fee of 50 CNY/MT. The producer noted that inquiries from magnesium plants have been stable in recent days, with some transactions, and counteroffers are hovering around 6,600 CNY/MT. The producer said, "Due to the price inversion between blue coke and FerroSilicon, we are continuously facing losses. Our prices have been very stable this week, but magnesium plants are seeing lower profits, and their willingness to buy is weak." The producer believes that FerroSilicon prices will remain weakly stable in the near term, constrained by both production costs and downstream demand, with producers showing a strong willingness to maintain price stability.

This company has an annual production capacity of 65,000 MTs, and it plans to produce 5,000 MTs in September, the same as in August.

For more product details and market trends, please contact Hainan West Asia Import & Export Group.