Ferrosilicon Market Analysis: June 2024 Price Trends and Outlook
Date: June 24, 2026
Current Market Overview
The global ferrosilicon market is experiencing moderate price stability in June 2026, with domestic Chinese prices showing a slight upward trend amid seasonal factors and energy cost pressures.
Price Benchmarks (June 2026):
- 72# Ferrosilicon: $830 – $846 per metric ton (FOB China)
- 75# Ferrosilicon: $898 – $920 per metric ton (FOB China)
- European Ferro Silicon: €1,250 – €1,350 per metric ton
Market Drivers
1. Steel Industry Demand
Global steel production remains robust, with crude steel output reaching 165 million tons in May 2026, according to World Steel Association data. The ongoing infrastructure projects in Southeast Asia, Africa, and the Middle East continue to support ferrosilicon consumption for steelmaking applications.
2. Energy Cost Pressures
Energy costs, which account for approximately 40-50% of ferrosilicon production costs, remain a critical factor. The approaching summer electricity consumption peak in China may lead to power rationing in major production regions such as Inner Mongolia, Ningxia, and Gansu, potentially constraining supply.
3. Export Market Dynamics
Chinese ferrosilicon exports have shown steady growth, with major destinations including Japan, South Korea, India, and Southeast Asian countries. The Pakistan steel industry has increased procurement volumes as their infrastructure development accelerates.
Inventory and Supply
Social inventories of ferrosilicon have declined to approximately 120,000 tons as of mid-June, down 8% from the previous month. Major producers are operating at around 65-70% capacity utilization, balancing market supply with current demand levels.
Q3 2026 Market Outlook
Looking ahead to Q3 2026, the ferrosilicon market is expected to see range-bound trading with moderate upside potential:
- Projected Price Range: $810 – $930 per metric ton for 72# FeSi
- Support Factors: Summer power restrictions, energy costs, seasonal steel demand recovery
- Pressure Factors: Global economic uncertainties, potential steel production cuts
Key Monitoring Points:
- Power consumption policies in major production regions
- Steel mill operating rates and restocking behavior
- International freight rates and export policies
- Raw material (coke, quartz) price movements
For buyers, strategic procurement at current price levels is advisable, with attention to potential supply tightness during peak summer electricity consumption periods.
Source: Industry research, SMM, Trading Economics | Report provided by SGD Alloy Co., Ltd.