GLOBAL FERRO-SILICON WRAP: Chinese market bounces; European unchanged while buyers, sellers jostle for upper hand in contract talks

The Chinese ferro-silicon market rebounded in the week ended Friday November 23 when low stock levels at smelters met with renewed demand from consumers, while the European market is in a holding pattern while waiting to settle longer-term delivery settlements with steel mills.

China sees renewed consumer demand amid reported lower ferro-silicon stock levels  Europe eyes first-quarter settlements for direction China market bounces amid renewed demand Domestic Chinese ferro-silicon prices increased last week after cargoes were actively traded, reversing weeks of slow activity and declining prices. Fastmarkets MB’s Chinese ferro-silicon ex-works price, basis 75% Si increased by 200-300 yuan to 6,800-7,000 yuan ($978.80-1,007.59) per tonne on Friday. According to one major ferro-silicon producer, the stronger domestic market was due mostly to low stock levels at ferro-silicon refineries. “Spot supply is tight and some consumers have started to stockpile more cargoes for production in the Christmas and New Year holidays,” another producer said, adding that a domestic price rally in downstream magnesium prices has cemented increased ferro-silicon prices. “The consensus now is that December steel mill tender prices will be higher than in November,” he said. Downstream magnesium, one of the biggest consumers...

Published

Declan Conway

Karen Ng

November 26, 2018

17:04 GMT

Galway, Singapore