China's FerroSilicon Prices Drop

Due to increased supply and downstream consumers refusing to accept high prices, the mainstream price of 72% 200-500mm FerroSilicon in China has decreased to 6,600-6,800 CNY/MT ex-factory cash, down 100 CNY/MT from two days ago. As most consumers choose to wait and see, industry insiders expect prices to decline further in the coming days.
A producer in Shaanxi stated that he has lowered his quotation for 72% 200-500mm FerroSilicon to 6,600 CNY/MT ex-factory cash and is willing to accept a discount of 50 CNY/MT for purchases exceeding 200 MT. "Prices have dropped rapidly this week because downstream consumers have adopted a wait-and-see attitude, so I lowered my quotation to follow the market trend. Today, I finally sold two truckloads to local customers at this price level. Fortunately, the price of local semi-coke has dropped by 50 CNY/MT to about 930 CNY/MT delivered cash, which has reduced my costs," the producer revealed. Three days ago, he sold 100 MT at a price of 6,850 CNY/MT ex-factory cash. He predicts that prices will fall further in the coming days. The producer has an annual production capacity of 90,000 MT and plans to produce 7,500 MT in June, almost the same as in May. He currently has no inventory. His production volume in 2023 was about 80,000 MT.
A consumer in Hunan pointed out that he received a quotation for 72% 200-500mm FerroSilicon from his regular supplier, with a price range of 7,150 CNY/MT to 7,250 CNY/MT for 180-day documentary acceptance (D/A), but he refused to restock today. "In mid-June, I purchased about 2,000 MT at an average price of 7,450 CNY/MT for 180-day D/A, but I delayed my procurement due to the rapid price drop this week," the consumer said. "I will closely monitor the market and lower my target price by 100 CNY/MT to about 7,100 CNY/MT." He predicts that prices will fall within the next week.
The consumer's annual consumption volume is 30,000 MT, and he plans to consume 2,500 MT in June, almost the same as in May. He currently has 1,000 MT in stock. His consumption volume in 2023 was about 30,000 MT.

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