China Ferrosilicon Prices Hold Steady

Mainstream 72%min 10-50mm ferrosilicon prices in China have remained at the existing 7,000-7,200 RMB/t ($966-994/t) ex-works, as consumers take a wait-and-see approach to the market. Considering that most consumers are still on the sidelines, market insiders are predicting that Chinese prices will remain stable over the next few days.

‘’Today I quoted 72%min 10-50mm ferrosilicon at CNY7,050/mt ($973/mt) ex-works ex-duty. Despite a lot of enquiries, I haven't closed the deal yet,’ said an Inner Mongolia-based producer, “I think my bottom line price is CNY7,000/t ($966/t).” However, she rejected a CNY7,100/tonne (US$980/tonne) order for 300 tonnes from Inner Mongolia yesterday, opting to sell only 150 tonnes as she expected prices to be higher. She predicted ferrosilicon prices would remain unchanged this week as consumers rejected higher offers.

The producer has an annual capacity of 36,000 tonnes and plans to produce 3,000 tonnes in May, essentially unchanged from April. There are currently no inventories. The producer's 2023 output is about 30,000 tonnes.

A producer in Shaanxi noted that he has a stable offer of 72%min ferrosilicon at CNY7,000/mt ($966/mt) ex-works spot price, and has received three to four enquiries today, but no deals have been concluded yet.’ I just sold 300 tonnes at this price yesterday,’ he added, ’and my customers are more inclined to wait and see the market at this price level, so I think ferrosilicon prices will remain stable in the next few days. ‘’

The producer, which has an annual capacity of 43,200 tonnes, plans to produce 3,600 tonnes in May, similar to the amount produced last month. He currently has no stockpiles.