The Rise Or Fall Of Ferro Silicon Price

There is limited room for ferro silicon prices to rise or fall, and silicomanganese prices are likely to rise sharply.

Since the beginning of 2025, ferro alloy prices fell first and then rose, and showed a trend of slow decline and sharp rise. On January 10, ferro silicon prices rose back to the mid-December 2024 position, and on January 12, silico manganese prices also rose more than the decline of the previous month.

From a fundamental point of view, the trend of ferro silicon depends on electricity prices, which are closely related to coal-fired power, new energy power generation and thermal power demand; silicomanganese depends on manganese ore prices. The current inventory of manganese ore is lower than that at the beginning of 2024, and the right of goods is more concentrated. It is expected that due to the Gabon railway accident, the shipment of large mines in Gabon will decrease by more than 50% in February. Combined with the storage and delivery of silicomanganese, the possibility of a sharp rise in the silicomanganese market has increased again.

The price of ferro silicon fluctuates around the cost of electricity prices, and the average electricity price has moved up slightly after the second week of January.

Since the supply and demand of ferro silicon is basically stable, the market has overcapacity but not overproduction, and production is determined by sales. Manufacturers maintain the price of ferro silicon at a small profit level, and the pricing of ferro silicon is anchored by electricity prices. After coal prices fell to the long-term contract price at the beginning of 2025, they stabilized and rebounded slightly under the support of the winter peak season. Electricity prices also stabilized. The average electricity price for large industries in Ningxia rose from 0.42 yuan/kWh to 0.425 yuan/kWh, and the average electricity price in Qinghai rose from 0.395 yuan/kWh to 0.415 yuan/kWh. The electricity price has stabilized and rebounded, driving the rebound of ferrosilicon prices. However, the coal inventory of downstream power plants is currently at a high level, and this winter is still warm. The market has not seen a big increase in coal products. Therefore, the author predicts that ferro silicon prices will still fluctuate.
The situation of ferro silicon is much more complicated than that of ferrosilicon, and it is not ruled out that the price of ferro silicon will rise again. The main reason is manganese ore.
The supply of manganese ore has been significantly reduced since November 2024, and the reduction is expected to continue at least until April 2025.