We would like to share a timely update on the ferrosilicon market, which is showing clear signs of tightening.
Key market developments
Supply side: Production in Gansu has been suspended due to high electricity costs (nighttime tariffs exceeding RMB 0.6/kWh), with no confirmed restart date. Some Qinghai producers have switched from full-load to off-peak operation to manage costs. While Ningxia has partially resumed, overall output remains constrained compared to previous months.
Steel tenders: Active buying interest from steel mills – a Shandong mill concluded a tender late last week, and market attention is now on Hebei Steel's upcoming pricing this week. A higher settlement there is expected to lift spot sentiment further.
Magnesium: Mg ingot offers have edged up, with sellers in Fugu holding back on low-price sales, reflecting broader cost-driven firmness.
Sentiment: Futures strengthened last week on supply concerns and a recovering ferrous complex, and the mood remains constructive entering this week.
Our view
With Gansu offline, Qinghai reducing load, and steel tenders progressing, downside risk is limited while upside pressure is building. The market is no longer offering bargains – waiting may result in paying higher levels in the near term.
Recommendation
We strongly advise securing your near-term requirements before Hebei Steel's tender result is released. Once that sets a new benchmark, suppliers will likely lift their offers further.
Please share your Q3 tonnage plans – we are ready to offer competitive fixed prices for prompt shipment.
📧E-mail: goldenltd.silicon@gmail.com 📞WhatsApp: 86 166 6372 1147
