Ferrosilicon Market Update: Prices Remain Stable Amid Slight Downward Adjustment

The Chinese ferrosilicon market remained generally stable over the past week, despite mild fluctuations in prices and market sentiment.

Market Overview

Last week, the ferrosilicon market trended weak but steady. Futures prices declined slightly, while spot transactions performed relatively well. However, most plants reported muted physical trading activity, and their quotations continued to follow the broader downward market trend.

Toward the end of the week, HBIS Group finalized its bidding price at 5,660 CNY/ton ($792/ton). The rise in raw coal prices helped halt the decline in ferrosilicon futures.

Current Price Levels

As of this morning:

• Ferrosilicon 72% (natural lump): $714–$728/ton EXW
• Ferrosilicon 75% (natural lump): $798–$812/ton EXW
• Ferrosilicon 72% (standard lump): $714–$728/ton EXW

Prices for ferrosilicon 75% fell slightly by $7–$14/ton, as supply tightness eased and the widening price gap between 72% and 75% grades led to minor corrections.

Raw Material Costs

In major producing regions, silica prices delivered to factories were 160–200 CNY/ton ($22–$28/ton). The EXW price of small-size semi-coke in Shenmu and Fugu stood at 690–750 CNY/ton ($97–$105/ton), remaining stable.
In Hebei (Shijiazhuang), 70# iron oxide scale prices fell by 110 CNY/ton, now quoted at 730–770 CNY/ton ($102–$108/ton), excluding tax.

Estimated ferrosilicon production costs are as follows:

Downstream Market

October bidding from key steel mills has concluded:

• HBIS Group: $792/ton
• Shagang Group: $798/ton

In the magnesium market, prices remained stable. The mainstream quotation in Fugu stood at $2,310/ton, with transactions around $2,296/ton. Supply of low-priced magnesium was limited, and downstream buyers remained cautious, resulting in subdued market activity.

Market Outlook

With bidding activity finalized and no new market catalysts emerging, both ferrosilicon and magnesium markets are expected to remain stable in the short term.
Production at most plants continues at normal levels, and participants are adopting a wait-and-see approach, anticipating that future movements will depend on raw material trends and steel sector demand.