FOCUS: What is driving up ferro-silicon prices in China?

Ferro-silicon prices in China have surged in the past week, with both domestic and export prices posting their highest weekly increases since early December 2020, according to Fastmarkets data. But what are the key drivers behind the rally?

Fastmarkets' weekly price assessment for ferro-silicon 75% Si min, in-whs China, risen to 7,800-8,000 yuan per tonne ($1,213-1,244) on May 12, up by 7.5% from 7,300-7,400 one week earlier.
Fastmarkets' weekly price assessment of Ferro-silicon 75% Si min export, fob China, was $1,600-1,650 per tonne on May 12, up by 11.3% from 1,450-1,470 per tonne one week earlier.
Carbon neutralization policy
In alignment with China's carbon neutralization policy, many steel mills there have gradually shifted raw materials from iron ore to steel scrap and have started to import large amounts of the latter. Ferro-silicon is used as a warming agent in the production process.

As part of the policy, the Chinese government published the Energy in...

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