China's ferro silicon market is currently navigating a complex landscape of stabilizing prices, cautious procurement, and shifting cost dynamics as the industry emerges from the post-holiday period.
Price Trends and Market Performance
The ferro silicon market has demonstrated mixed performance in recent days. According to industry data, the ferro silicon main contract on the Zhengzhou Commodity Exchange (ZCE) for May 2026 delivery closed at 5,470, showing a marginal decline of 0.11% . Meanwhile, spot prices have shown slight upward momentum, with some regions reporting increases of 10-50 RMB/ton, driven primarily by stronger futures performance .
In the major producing regions, 72% silicon grade ferro silicon is currently priced at 5,150-5,200 RMB/ton ex-factory (cash including tax), while 75% grade commands higher prices of 5,850-6,000 RMB/ton . The NingXia region specifically reports 72% grade prices in the range of 5,150-5,300 RMB/ton, with market averages settling around 5,190 RMB/ton.
Supply-Side Developments
Supply conditions remain relatively stable across major production hubs. Inner Mongolia and Ningxia provinces maintain steady operational rates, with no significant production cuts reported . However, industry observers note that overall national operating rates remain at historically low levels for this period .
A notable development on the cost front involves semi-coke pricing. Some producers have implemented a 50 RMB/ton reduction in semi-coke small particle procurement prices, now set at 685 RMB/ton (ex-factory, acceptance including tax) . This adjustment provides modest relief to production costs, though electricity pricing remains a critical variable.
Regional electricity cost disparities continue to shape competitive dynamics. Ningxia maintains advantageous grid pricing, while producers in Qinghai, Gansu, and Shaanxi face higher electricity expenses, creating significant production pressure . Industry participants are closely monitoring February electricity settlement prices for further cost implications.
Demand Outlook and Procurement Activity
Demand recovery presents a mixed picture. Steel mills, the primary consumers of ferro silicon, are gradually ramping up operations following the holiday period. However, procurement activity remains measured, with mills maintaining cautious purchasing strategies amid ample inventory levels .
A positive signal emerged with Jiangsu某 Steel Mill issuing a tender for 600 tonnes of ferro silicon at 5,690 RMB/ton (cash including tax, delivered) . Additionally, Jiugang Group has launched tenders for March delivery of low-aluminum and ultra-low carbon ferro silicon, indicating forthcoming procurement activity .
The magnesium metal sector, another important downstream consumer, maintains stable production schedules but provides limited price support for ferro silicon . Magnesium prices show modest strength, with 99.90% grade offered at 16,500-16,600 RMB/ton ex-factory in Shaanxi.
Market Outlook
Looking ahead, ferro silicon prices face competing forces. Accelerating post-holiday steel mill production and gradual restocking demand could support further price appreciation . Conversely, persistently weak downstream consumption may exert downward pressure .
Most analysts expect continued range-bound trading in the near term, with market attention focused on steel mill production recovery rates, March tender activity from major steel groups, and production resumption patterns in major manufacturing regions .
