Wait-and-see in FeSi

News that the Chinese government will allow some of its ferrosilicon producers to restart by the end of the year has frozen the ferrosilicon market. While the ZCE keeps moving to record highs, buyers now aren’t in a rush to book and want to see how many smelters will reopen.
Sellers say they have quotes out ranging from around $1,800 per mt (still under validity) to over $2,400, but nothing is being booked.
Meanwhile, the ZCE’s ferrosilicon price rose today to rmb9,036 per mt, up rmb252 for the January contract on volume of 366,724 contracts. The backwardation widened, with a the May contract up only rmb24 to rmb7,244 per mt.
The ZCE’s January silicomanganese contract rose rmb472 to rmb8,826 on volume of 365,042 contracts while the May contract rose rmb250 to rmb7,676 on volume of 100,372 contracts.

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