The Chinese domestic ferro-silicon market has bounced in the past week due to a fall in production on a combination of government pollution controls and prohibitively expensive electricity costs; meanwhile, the European market has climbed after third-quarter deliver settlements were agreed above the previous bottom in spot prices.
China domestic market bounces due to falling supply amid cuts European market heads higher US prices set to track other markets Metal Bulletin's Chinese domestic spot ferro-silicon (basis 75% silicon) prices soared 500-600 yuan week on week to 7,000-7,400 yuan ($1,057.22-1,117.63) per tonne on Friday June 29 from 6,500-6,800 yuan per tonne a week ago. A sudden shortage of supply was the main reason given by trade sources. Erdos, a major producer of ferro-silicon in northern China, slashed production by 30%, according to a company official. That cut in national supply was exacerbated by shutdowns of smaller ferro-silicon producers, which cut production earlier in June due to high electricity costs. The Erdos cut was equivalent to about 30,000 tonnes a month being removed from the market, one source said. "Although domestic demand is stable, this supply shortage will continue to push prices up through July," the source said. Some other...