Ferrosilicon Market Faces Continued Downward Pressure in Q1 2025

Ferrosilicon Market Faces Continued Downward Pressure in Q1 2025

As the first quarter of 2025 comes to an end, the global ferrosilicon market continues to struggle with a persistent downward trend, showing little sign of recovery.

China Market Overview

In China, recent shutdowns of some production plants initially led to a slight increase in futures prices. However, this upward momentum quickly faded, and the spot market continued its decline. The presence of low-priced overseas supply has intensified competition, forcing some exporters to reduce prices, while others opt to purchase cheaper supply for re-export. At the same time, certain manufacturers attempt to hold their price quotations, but overall market transactions remain sluggish.

Market quotations have become increasingly chaotic due to these mixed strategies. Russian ferrosilicon remains a major competitor in the export market, with spot prices for 75% ferrosilicon reported at $1,080 per ton FOB, while futures prices are even lower at $1,050 per ton. In comparison, the normal supply from China is priced at a minimum of $1,100 per ton, leaving Chinese producers at a clear disadvantage. Amid this fierce price competition, some lower-grade mixed supplies have reappeared in the market. Even reports of plant shutdowns have failed to impact prices in the current bearish market environment.

India Market Performance

The Indian market is also experiencing a downward trend. Earlier, shutdowns at domestic plants had temporarily supported prices above 100,000 INR per ton. However, as production resumed last week, prices declined significantly. The latest reports indicate that the ex-works price of 70% ferrosilicon has dropped to 98,000 INR per ton, with some producers attempting to hold prices, though transactions remain limited. Weak demand continues to be the main driver of price declines, and some market participants predict further drops, potentially reaching 90,000–95,000 INR per ton.

Market Outlook

Without a substantial increase in demand, the ferrosilicon market is expected to remain under pressure. The prevailing bearish sentiment suggests that prices will continue to hover at low levels, with little immediate prospect of recovery.