GLOBAL FERRO-SILICON WRAP: Firmer fundamentals boost China; European market stabilizes after losses but outlook remains weak

Ferro-silicon prices in China increased sharply in the week ended Friday June 28, following a steady run of five weeks, after lower output and higher futures prices encouraged suppliers to raise their offers ahead of monthly tenders from Chinese steel mills.

In Europe, the market has stemmed losses after a sharp fall the week before, but prices are seen as fragile in the near term because some consumers are offering below currently annual low spot prices for prompt and longer-term deliveries. Meanwhile, the US market followed the European market downward, with sellers offering more aggressively on limited spot demand. China market up 7% on supply tightness, expected demand Europe stabilizes but seen as weak US prices tumble under pressure from weak global markets China market jumps on firmer fundamentals In China, domestic ferro-silicon prices jumped by around 7% week on week this past week after producers stopped offering cargoes into an already tightly supplied spot market. That supply situation is expected to meet the imminent settlement of monthly consumer tenders, cementing price increases despite steel production cuts in China’s Tangshan region. Fastmarkets assessed the Chinese domestic spot ferro-silicon (basis 75% silicon) price at 6,400-6,450...

Published

Chris Kavanagh

Declan Conway

Huaqing Fu

July 02, 2019

10:30 GMT

Galway, New York, Shanghai