Is The Ferrosilicon Market in A Stalemate?

Domestic and International Price Performance: From November 3rd to November 7th, 2025, the ferrosilicon market exhibited a narrow range of fluctuations, characterized by a "ceiling" and a "floor." In the spot market, the ex-factory price (including tax) of 72# ferrosilicon lump in major producing areas remained at 5150-5250 yuan/ton, while the price of 75# ferrosilicon was 5700-5800 yuan/ton, basically unchanged from the previous week. In the futures market, the main ferrosilicon contract showed a weak and volatile trend, closing at 5526 points on November 7th, down 60 points from the previous trading day, indicating a cautious market sentiment. This stalemate was mainly due to the intense interplay between cost support and weak demand-increased electricity settlement prices in producing areas pushed up production costs, while slow progress in steel mill bidding suppressed spot prices.

Key Volatility Day Analysis: November 7th became the turning point of the week. Affected by the downward fluctuations in futures prices, confidence in the spot market was somewhat weak. However, most factories, facing increasing losses, were not very willing to lower prices to move inventory, resulting in a stalemate between buyers and sellers. It is worth noting that the continued rise in costs has become the biggest variable in the market: the settlement electricity price in Ningxia increased by about 1 cent, while the settlement electricity price in Qinghai saw a significant increase, with increases ranging from 3 to 6 cents, leading to an increase in ferrosilicon costs to 5600-5700 yuan/ton, resulting in severe losses for enterprises. Meanwhile, a large steel mill in Jiangsu finalized its ferrosilicon purchase price at 5720 yuan/ton (acceptance), an increase of 20 yuan/ton from the previous round, providing slight support to the market.

Regional Price Differences: The market exhibits significant regional differentiation. In major producing areas, Qinghai and Ningxia have strong cost support due to increased electricity prices; among traders, the price of 72# ferrosilicon lumps in Henan (excluding tax) hovers around 5000 yuan/ton, with moderate market circulation and overall sluggish transactions. Some companies reported difficulties in closing deals and suspended shipments, while some traders engaged in bargain hunting and stockpiling, indicating a divergence in market acceptance of current price levels.

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