Chinese domestic market bounces as supply tightens but production restarts may hamper recovery
European market seen stabilizing in the near term after another drop
The price of ferro-silicon in China’s domestic market rose in the week ended Friday January 18, snapping four consecutive weeks of decline driven by sellers’ eagerness to clear their inventories ahead of Chinese New Year in early February.
"[The panic selling] seems to be fading and the domestic price has recovered slightly," a trader said.
Tightening supply of the alloy, resulting from the suspension of production at a number of smaller ferro-silicon producers in China, was the main reason for the uptick in prices last week, market sources said.
Fastmarkets assessed the price for Chinese ferro-silicon, basis 75% Si, ex-works, at 6,300-6,400 yuan ($927-942) per tonne on January 18, up by 100 yuan per tonne from a week earlier.
But market sources told Fastmarkets that some of the...