The recent downtrend in Chinese domestic ferro-silicon prices continued in the week ended Friday May 17 amid an abundance of the material, while sentiment remained bearish due to weak demand from the country's steel and magnesium markets.
Chinese market extends losses amid ample supply. Sluggish demand compounds weakness in China. European market steady, further cements price floor. US market flat amid lack of spot activity.Chinese market slides further on weak fundamentalsFerro-silicon prices in China weakened further over the past week, pressured by ample supply and bearish market sentiment.Fastmarkets assessed the Chinese domestic spot ferro-silicon (basis 75% silicon) price at 5,900-6,100 yuan ($853-882) per tonne on Friday, narrowing downward by 200 yuan per tonne from 5,900-6,300 yuan per tonne a week earlier.Market participants attributed the decline to weaker demand from steel mills after having settled their monthly tenders for May delivery. In addition, limited inquiries from the Chinese magnesium sector added also prompted domestic ferro-silicon suppliers to cut their offer prices to attract business."There are few inquiries from the downstream Chinese magnesium sector, which has been struggling for a while because downstream buyers are reluctant to buy...