GLOBAL FERRO-SILICON WRAP: Brighter downstream demand boosts Chinese prices; quiet US market views global prices as supportive

Both the Chinese domestic and export ferro-silicon prices jumped up by around 5% week on week on Wednesday July 17 on improved demand and tight supply, while US market participants view the stabilizing European price as a hint that the US price is close to reaching a bottom.

An uptick in ferro-silicon demand pushed the Chinese domestic market up by 4.8% while the export price increased by 5.1%. US market narrowed downward week on week amid lackluster spot demand. Europe market remained stable. Major Chinese ferro-silicon producers raised their offer prices last week due to a combination of demand- and supply-side drivers. Fastmarkets’ ferro-silicon 75% Si min, in-whs China price increased by 300 yuan week on week to 6,500-6,700 yuan ($943-972) per tonne on Wednesday July 17.

The price was supported by improved demand from domestic Chinese magnesium smelters, a major consumer of 75% ferro-silicon. A source told Fastmarkets that magnesium smelters had low levels of ferro-silicon storage, meaning they needed to replenish inventories.

Meanwhile, a rebounding domestic magnesium price also helped to lend upward pressure to the ferro-silicon price. Fastmarkets’ magnesium 99%, exw China price rose by 0.5% week on week to 15,350-15,500 yuan...

Published

Chris Kavanagh

Cristina Belda

Nikki Ni

July 23, 2019

10:44 GMT

Shanghai, London, New York