Chinese ferro-silicon prices continued their downward trend over the past week, pressured by ample stocks and a negative outlook for the market due to weakness in the country's steel sector.
Metal Bulletin assessed the Chinese domestic spot ferro-silicon (basis 75% silicon) price at 6,100-6,500 yuan ($971-1,035) per tonne on Friday March 30, compared with 6,500-7,000 yuan per tonne a week earlier. Major steel mills in China have yet to announce their ferro-silicon tenders for April, but most market participants hold a bearish view toward these given the steel sector's weakened state, with some anticipating lower demand for the alloy from the mills."With a widely-shared bearish sentiment towards the steel sector, ferro-silicon prices are likely to be bogged down for a while," a producer said. "In addition, ferro-silicon refineries are operating at their full rates so supply is ample," the producer added. Meanwhile, a softening in magnesium prices due to consumers' low buying interest has fueled further concerns in the Chinese ferro-silicon market. Ferro-silicon is used as a reducing agent in magnesium production and the higher prices for the latter had...