Ferrosilicon: Electricity Prices Edge Up, Pushing Production Costs Higher

Ferrosilicon: Electricity Prices Edge Up, Pushing Production Costs Higher

Beijing, August 5, 2025 — China’s ferrosilicon market is showing steady pricing, but a slight increase in electricity tariffs is adding upward pressure on production costs.

According to ferroalloynet.com, EXW quotations for ferrosilicon 72 % are currently 5,400–5,500 CNY/ton (about USD 750.7–765.6/ton). Ferrosilicon 75 % is quoted at 5,800–5,900 CNY/ton (about USD 807.4–821.3/ton). While prices have edged down slightly from earlier highs, they remain supported by basic demand.

In July, electricity prices in Ningxia ranged from 0.35 to 0.41 CNY/kWh (about USD 0.0487–0.0571/kWh). In Qinghai (Xining), rates held steady at 0.37–0.38 CNY/kWh (about USD 0.0515–0.0529/kWh), consistent with June levels.

On the downstream side, overall procurement has declined, and spot supply has tightened due to summer maintenance at some plants. In the Fugu area, ferrosilicon prices remain firm at 17,100–17,200 CNY/ton (about USD 2,379–2,396/ton), with traders showing a stronger wait-and-see stance.

Daily ferrosilicon output has rebounded to 15,455 tons (equivalent to about USD 2,151.7 tons-USD/day), up 365 tons from the previous period. August steel bidding is underway, with higher price offers seen. In the near term, the spot market may soften, but the decline is expected to be limited.