Chinese domestic ferro-silicon prices dropped on Friday April 20, renewing a downward trend seen earlier in April and prompting a switch in production to lower grade alloy.
China cuts standard grade production Europe awaits Q2 settlements to provide spot direction US eases, near-term outlook stable Metal Bulletin's Chinese domestic ferro-silicon prices fell last week, dragged down by excess supply in the market amid weak demand. Chinese domestic spot ferro-silicon (basis 75% silicon) prices were assessed at 5,800-6,200 yuan ($921-$985) per tonne on Friday April 20 from 6,100-6,500 yuan per tonne a week earlier. According to industry sources, some producer output of 75% silicon-contained grade ferro-silicon did not fulfil consumer needs or were surplus to requirements in the spot market. That situation has prompted more ferro-silicon producers to switch to making 72% silicon-contained grade in a market where the need is greater for the alloy. "Prices for 72% silicon grade are lower, however, and cuts profit margins for producers," one industry source said. But a producer source said they have not been affected by falling spot prices as...