The Chinese ferro-silicon market should hold in July supported on limited stocks. The market is likely to strengthen slightly in the third quarter this year ahead of the traditionally busier fourth quarter. Moreover, major producers have recently agreed to hold capacity utilisation at 50% to underpin domestic prices. In the USA, market sentiment is fairly bullish, with the bulk of spot business being done at the mid-high $0.90/lb level. European prices have slipped over the past month, but we expect further declines to be limited. Supply remains relatively tight, and EU steelmakers continue to boost output. We expect to see ferro-silicon prices trend stable to slightly lower in the coming weeks before regaining upward momentum late in the third quarter after the summer slowdown.
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