We're pleased to provide the latest update on the China Ferro Silicon market as of May 30, 2024.
The main contract for ferro silicon surged by more than 22% from its low point on March 28 to its peak on May 30. Ferro silicon spot prices also performed well, rising over 13% from March 28 to May 29. Ferro silicon is a crucial raw material for non-ferrous and ferrous metal smelting, primarily serving as a deoxidizer in metal refining. The main downstream industries for ferro silicon are the steel and magnesium metal industries.
On May 29, China's State Council has released an action plan for energy conservation and carbon reduction for 2024-25, aiming to reduce energy consumption and carbon dioxide emissions per unit of GDP by approximately 2.5 percent and 3.9 percent, respectively, in 2024. Energy consumption per unit of added value of industrial enterprises above the designated size will be reduced by around 3.5 percent this year, according to the plan. It added that the proportion of non-fossil energy consumption will reach around 18.9 percent in 2024 and 20 percent in 2025. Both in 2024 and 2025, energy conservation and carbon reduction transformations in key sectors and industries are expected to result in a reduction of around 50 million tonnes of standard coal and a decrease in carbon dioxide emissions by around 130 million tonnes. China has committed to a "dual carbon" goal of reaching the peak of carbon emissions by 2030 and attaining carbon neutrality by 2060.
As a traditionally high energy consumption industry, ferro silicon production consumes about 8000 kWh per ton of steel. Energy consumption constraints might limit ferro silicon supply, which previously led to a significant price increase in 2021 due to such constraints. With the expectation of strengthening energy consumption control, supply restrictions for ferro silicon may continue to support its prices.
Hope it will help to guide your purchasing plan. If you have any new enquiry, please don't hesitate to contact us at jscferroalloy@jscferroalloy.com. Stay informed with the latest updates!
Keywords: Ferro Silicon, Ferrosilicon, FeSi, FeSi 65, FeSi 72, FeSi 75, Ferro Silicon Market, Steel mills
