GLOBAL FERRO-SILICON WRAP: Weaker fundamentals undermine China prices; Europe eyes Q2 settlements

The Chinese domestic ferro-silicon price has fallen for the second week in a row amid weaker fundamentals of supply and demand in the week to Friday March 1, while the European market braced for renewed weakness ahead of longer-term delivery settlements.

China price falls to annual low Market at level last seen in April 2018 Europe's first second-quarter tender seen below spot prices US spot demand remains limited In the Chinese ferro-silicon domestic market, prices have fallen again on weak demand and plentiful stock levels at refineries. Domestic producers have been cutting their offer prices against lower bids from buyers, and ferro-silicon plants in Ningxia were reported to have shut their operations due to incurred losses. “Despite lower ferro-silicon production in Inner Mongolia due to some plant closures, prices keep falling,” a Chinese ferro-silicon producer producer said. “Ample supply has weighed on the domestic price amid quiet business activity." March tender prices were reported lower from domestic steel mills, and at smaller volumes than usual. As a result, Fastmarkets MB's Chinese ferro-silicon ex-works price, basis 75% Si, dropped by 100 yuan per tonne to 5,800-6,000 ($867-897) yuan per tonne on March 1. In the...

Published

Chris Kavanagh

Declan Conway

Karen Ng

March 04, 2019

23:24 GMT

Galway