Ferrosilicon Market Weekly Report – May 27, 2026
China Ferrosilicon Market Overview
As of May 27, 2026, the Chinese ferrosilicon market continues to demonstrate resilience amid fluctuating demand patterns across key steelmaking and foundry sectors. According to reference data from major trading platforms, the prevailing price range for FeSi 75% stands at approximately RMB 6,000–10,100 per metric ton (roughly USD 830–1,400/mt), depending on grade, specification, and order volume.
Price Breakdown by Grade
- FeSi 75% (Standard): RMB 6,000–8,800/mt — the most widely traded specification, primarily consumed by steelmaking and casting industries. Competitive offers from major production bases in Ningxia, Gansu, and Inner Mongolia continue to anchor the lower end of the range.
- FeSi 75% (Low Al): RMB 6,600–8,800/mt — low-aluminum ferrosilicon commands a slight premium due to its specialized application in precision casting and stainless steel production.
- FeSi 72%: RMB 6,000–7,400/mt — a cost-effective alternative for foundries and smaller steel mills, with steady demand from Southeast Asian buyers.
Supply-Demand Dynamics
On the supply side, production in northwestern China remains largely stable, with smelters in Ningxia and Qinghai maintaining normal operating rates. However, seasonal electricity cost adjustments and environmental inspections in some regions have created intermittent supply constraints, providing modest support for prices.
From the demand perspective, domestic steel mills have maintained moderate procurement levels. Notably, export demand from Japan, South Korea, and Southeast Asian markets remains robust, with Chinese ferrosilicon continuing to enjoy a competitive pricing advantage over alternative sources. Pakistani and Indian buyers have also shown increased interest in long-term supply agreements, reflecting growing confidence in China’s ferroalloy supply chain stability.
Key Market Drivers
- Industrial Recovery: China’s industrial profits rose 18.2% year-on-year in January–April 2026, with the nonferrous metals sector posting a remarkable 117.8% profit increase, signaling strong downstream demand momentum.
- Export Growth: Continued infrastructure development across Belt & Road countries sustains healthy demand for Chinese ferrosilicon exports, particularly in emerging markets.
- Energy Costs: Electricity tariff adjustments in major production regions remain a key cost variable, with summer peak-load pricing expected to provide marginal price support through Q3.
Market Outlook
Looking ahead, the ferrosilicon market is expected to maintain its current trading range in the near term, with potential upside if summer power restrictions tighten supply. Export-oriented suppliers are well-positioned to benefit from sustained overseas demand, particularly from South and Southeast Asian steelmakers. We recommend buyers consider securing volumes ahead of the traditional summer production adjustment period.
Disclaimer: Prices referenced in this report are based on publicly available trading platform data and industry sources. Actual transaction prices may vary depending on specific terms, quantities, and delivery conditions. This report is for informational purposes only and does not constitute investment advice.