The Chinese domestic ferro-silicon market has lost earlier gains as a result of slow demand outweighing environmentally driven production cuts and anticipated tighter supply. Meanwhile, the European market has been stable ahead of the third-quarter delivery settlements between alloy suppliers and consumers in the steel sector.
China drops in line with demand, set to fall further in near termEurope holds ahead of third-quarter talks US market stable, awaiting further third-quarter negotiations Metal Bulletin assessed Chinese domestic spot ferro-silicon (basis 75% silicon) prices at 6,700-7,000 yuan per tonne ($1,047-1,094) on Friday June 15, down from 6,900-7,200 yuan per tonne a week earlier.Fewer trades were heard to have taken place this past week, due to sluggish demand from steel mills and thin trades ahead of China's Dragon Boat Festival on June 18. Market participants expected prices to fall again in coming weeks, in line with persistent slow demand. "The Chinese government is being strict on environmental regulations; and in the domestic market the main material used is basis 72% silicon, which causes PM [particulate matter] 2.5 in the air. [But] we estimate prices for ferro-silicon to continue falling in the weeks ahead on weak demand,"...