Ferrosilicon Market Dynamics in January 2024

Towards mid-January, conditions in China's spot ferrosilicon market changed dramatically in a week as local consumers' interest in the alloy increased, making it possible to avoid potential price drops that suppliers had feared. Despite the seasonal downturn in the steel industry, purchasing activity increased slightly as local ferrosilicon consumers began to replenish inventories as the February holiday week approached. Additionally, prices for the alloy are relatively low (at three-year lows) and have likely reached a price bottom, so buyers can safely stock the material without fear of a future price crash.