China domestic market bounces due to falling supply amid cuts
European market heads higher
US prices set to track other markets
Metal Bulletin’s Chinese domestic spot ferro-silicon (basis 75% silicon) prices soared 500-600 yuan week on week to 7,000-7,400 yuan ($1,057.22-1,117.63) per tonne on Friday June 29 from 6,500-6,800 yuan per tonne a week ago.
A sudden shortage of supply was the main reason given by trade sources. Erdos, a major producer of ferro-silicon in northern China, slashed production by 30%, according to a company official.
That cut in national supply was exacerbated by shutdowns of smaller ferro-silicon producers, which cut production earlier in June due to high electricity costs. The Erdos cut was equivalent to about 30,000 tonnes a month being removed from the market, one source said.
“Although domestic demand is stable, this supply shortage will continue to push prices up through July,” the source said.