Chinese ferrosilicon production has resumed but at a limited scale. The Zhongwei district in Ningxia allowed the smelters to resume production but only at 50% of capacity. There are 16 smelters in the district with a total capacity of around 400,000 mtpy. The smelters produce a mixture of 75% and 72% ferrosilicon; virtually all the 72% is destined for the domestic market.
There is no timetable on when the smelters would be allowed to restart all their furnaces. Erdos, China’s largest ferrosilicon producer, lowered its prices for 75% grade to rmb 8,500, down rmb 500 and prices could fall to as low as rmb 8,000 before the Spring Festival.
Already small Chinese ferrosilicon producers have lowered their 75% prices to rmb 7,000-8,000 per mt in order to raise money before the Spring Festival.
The export price has now fallen to $1,850-1,870 per mt.
The ZCE’s May ferrosilicon price rose rmb 98 to rmb 6,522 per mt on volume of 388,306 contracts changing hands, while the May silicomanganese price fell rmb 24 to rmb 7,232 per mt on 174,744 contracts.