China: Ferro silicon prices decline w-o-w, smelters cut output | BigMint

Weak mill margins lead to cautious procurement

Stable semi-coke tags might lend cost support

Mysteel Global: China's ferro silicon (FeSi) prices stayed on the lower side over the past week, with tags of the 75% grade under Mysteel's assessment standing at RMB 5,733/tonne (t) ($792/t), including 13% VAT, as of 24 March, lower by RMB 76/t ($10/t) from one week before.

As for the derivatives market, the most-traded ferro silicon contract on the Zhengzhou Commodity Exchange (ZCE) for delivery in May closed the daytime trading session at RMB 6,022/t ($830/t) on 24 March, falling by RMB 27/t ($4/t) from the settlement price on 17 March, according to the exchange's data.

Sentiment in the domestic ferro silicon segment has remained weak due to depressed sales in the physical market. Many steel mills were cautious about building up ferro silicon stocks, as they preferred to keep their inventories low to reduce their risks, Mysteel Global learnt. After all, their profit margins on finished steel sales have yet to see a significant recovery.

China's ferro silicon output declined last week, as weak prices led some smelters to suspend operations and conduct maintenance on their smelting furnaces.

Mysteel's latest weekly survey showed that over 14-20 March, daily ferro silicon output among the 136 independent smelters under Mysteel's regular tracking stood at 15,990 t/day on average, down by 560 t/d w-o-w after the growth seen during the previous week. The sampled smelters host 90% of China's ferro silicon smelting capacity.

Market participants warn that domestic ferro silicon prices are unlikely to see any substantial uptick in the near term, given the lacklustre demand of Chinese steelmakers. However, prices might gain some support from the cost side with the stable prices of semi-coke, a vital input.

As of 24 March, prices of small granularity semi-coke in Northwest China's Shaanxi were assessed by Mysteel at RMB 660/t, including the 13% VAT, the same level from one week before.

Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.

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Mysteel Global: China's ferro silicon (FeSi) prices stayed on the lower side over the past week, with tags of the 75% grade under Mysteel's assessment standing at RMB 5,733/tonne (t) ($792/t), including 13% VAT, as of 24 March, lower by RMB 76/t ($10/t) from one week before.

As for the derivatives market, the most-traded ferro silicon contract on the Zhengzhou Commodity Exchange (ZCE) for delivery in May closed the daytime trading session at RMB 6,022/t ($830/t) on 24 March, falling by RMB 27/t ($4/t) from the settlement price on 17 March, according to the exchange's data.

Sentiment in the domestic ferro silicon segment has remained weak due to depressed sales in the physical market. Many steel mills were cautious about building up ferro silicon stocks, as they preferred to keep their inventories low to reduce their risks, Mysteel Global learnt. After all, their profit margins on finished steel sales have yet to see a significant recovery.

China's ferro silicon output declined last week, as weak prices led some smelters to suspend operations and conduct maintenance on their smelting furnaces.

Mysteel's latest weekly survey showed that over 14-20 March, daily ferro silicon output among the 136 independent smelters under Mysteel's regular tracking stood at 15,990 t/day on average, down by 560 t/d w-o-w after the growth seen during the previous week. The sampled smelters host 90% of China's ferro silicon smelting capacity.

Market participants warn that domestic ferro silicon prices are unlikely to see any substantial uptick in the near term, given the lacklustre demand of Chinese steelmakers. However, prices might gain some support from the cost side with the stable prices of semi-coke, a vital input.

As of 24 March, prices of small granularity semi-coke in Northwest China's Shaanxi were assessed by Mysteel at RMB 660/t, including the 13% VAT, the same level from one week before.

Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.

Weak mill margins lead to cautious procurementStable semi-coke tags might lend cost supportMysteel Global: