Ferrosilicon futures edged lower on Monday, with the main contract weakening amid a broadly soft black metals complex. Spot prices for 72-grade ferrosilicon also softened in key producing regions.
On the supply side, a major producer in Gansu has shut down four furnaces, cutting daily output. However, overall weekly production still rose slightly, with operating rates diverging across regions - down in Ningxia but up in Qinghai and Inner Mongolia.
Demand remains lackluster. Steel mill consumption of ferrosilicon stayed low, and magnesium output declined, offering limited support to prices.
Inventories at sample producers continued to build both week-on-week and year-on-year, though warehouse receipts and effective forecasts fell as the validity period approaches.
Bottom Line: Production cuts are gradually increasing, but upward momentum is still limited. Ferrosilicon prices are expected to remain under pressure and trade in a range-bound pattern in the near term.
With prices currently range-bound and near-term pressure persisting, this could be a sensible window to lock in supply. We welcome you to reach out with your required specifications and volumes for a tailored quotation - procurement on a need basis is encouraged.
