The Chinese ferro-silicon market has dropped in the week to Friday September 7 ahead of the imminent arrival of new cargoes of alloy and expected winter steel production cut, while the price spread has widened in Europe amid illiquid trading conditions.
China market pressured on expected renewed supply Consumption in focus as steel cuts loom Europe awaits new deals as price range widens US market steadies on thin trading Chinese ferro-silicon prices have dropped in the past week on worries about looming increased spot supply amid only moderate levels of demand. Metal Bulletin assessed the Chinese ferro-silicon ex-works price, basis 75% Si, at 6,700-7,000 ($979-1,022) yuan per tonne on Friday, compared with 6,900-7,100 yuan per tonne the week before. As the September ferro-silicon contract on the Zhengzhou Commodity Exchange (ZCE) is approaching its delivery date, market participants are worried that delivered cargoes expected in the near term will increase spot supply. "The demand has been stable, but we might see more cargoes flowing into the spot market," one producer said. Moreover, winter capacity production cuts in the steel sector are likely to curb buying interest for ferro-silicon in the next...