The Chinese domestic ferro-silicon market has dropped further, in line with demand and increased production in northern China, while export prices have held despite weaker demand; meanwhile, the European market has been steady, and market sentiment suggests higher spot prices in the near term.
Weaker fundamentals, higher supply in northern China drag down domestic prices Europe third-quarter settlements set platform for higher spot US market stalls amid inactivity Metal Bulletin assessed the Chinese domestic spot ferro-silicon (basis 75% silicon) price down 200 yuan per tonne week on week at 6,500-6,800 ($1,000-$1,045.30) yuan per tonne on Friday June 22, off from 6,700-7,000 yuan per tonne a week earlier. Domestic demand was weak, although supply in the southern part of China was said to be tight due to more plant shutdowns because of their non-compliance with environmental regulations. "We heard that in the northern part of China, ferro-silicon plants were ramping up production and ferro-silicon cargoes were being shipped south to cover the shortage there," a producer said. Market participants also expected domestic demand for ferro-silicon to be weak in the near term because of a government push for cleaner air, causing steel...